Question 11 In March 2016, the U.S. nonbank public held $1.3 trillion in currency. The checkable deposits of U.S. commercial banks were $1.8 trillion. The total reserves of the U.S. banking system were $2.6 trillion. Of this total, $0.15 trillion were required reserves. Which of the following statements is not correct? O The U.S. M1 money supply was $3.1 trillion. O The U.S. banking system held more than 100 percent reserves against its checkable deposits. O The average required reserve ratio for U.S. commercial banks was less than 10 percent. The excess reserves of U.S. banks were more than 15 times larger than their required reserves. O None of the above: that is, each of the above statements 'is' correct.
Question 11 In March 2016, the U.S. nonbank public held $1.3 trillion in currency. The checkable deposits of U.S. commercial banks were $1.8 trillion. The total reserves of the U.S. banking system were $2.6 trillion. Of this total, $0.15 trillion were required reserves. Which of the following statements is not correct? O The U.S. M1 money supply was $3.1 trillion. O The U.S. banking system held more than 100 percent reserves against its checkable deposits. O The average required reserve ratio for U.S. commercial banks was less than 10 percent. The excess reserves of U.S. banks were more than 15 times larger than their required reserves. O None of the above: that is, each of the above statements 'is' correct.
Chapter1: Making Economics Decisions
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Pls help with this homework, explain the selected options throughly.
![Question 11
In March 2016, the U.S. nonbank public held $1.3 trillion in currency. The checkable deposits of U.S.
commercial banks were $1.8 trillion. The total reserves of the U.S. banking system were $2.6
trillion. Of this total, $0.15 trillion were required reserves.
Which of the following statements is not correct?
The U.S. M1 money supply was $3.1 trillion.
O The U.S. banking system held more than 100 percent reserves against its checkable deposits.
O The average required reserve ratio for U.S. commercial banks was less than 10 percent.
The excess reserves of U.S. banks were more than 15 times larger than their required reserves.
O None of the above: that is, each of the above statements "is" correct.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F280b521f-4e8b-4182-b537-e13c847a28e7%2F503efb6e-d038-4229-85d0-9b50912b4d14%2Fimm2lb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 11
In March 2016, the U.S. nonbank public held $1.3 trillion in currency. The checkable deposits of U.S.
commercial banks were $1.8 trillion. The total reserves of the U.S. banking system were $2.6
trillion. Of this total, $0.15 trillion were required reserves.
Which of the following statements is not correct?
The U.S. M1 money supply was $3.1 trillion.
O The U.S. banking system held more than 100 percent reserves against its checkable deposits.
O The average required reserve ratio for U.S. commercial banks was less than 10 percent.
The excess reserves of U.S. banks were more than 15 times larger than their required reserves.
O None of the above: that is, each of the above statements "is" correct.
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