If a country's currency has a market driven value that is higher than economic theory would suggest, the currency is considered to be

In September 1992, Great Britain changed its exchange rate system. How?

A) It abandoned the gold standard in favor of pegging to the U.S. dollar. B) It joined in with the new euro. C) It switched from an exchange rate peg to floating. D) It abandoned the sterling backing for the British pound.

Assuming the required reserve ratio is 20 percent and total reserves are set at $20 billion, then the maximum amount of deposits would be

a. $100 billion. b. $40 billion. b. $4 billion. d. $60 billion. e. $120 billion.