Table 9-5 Bolton Bank: Partial Balance Sheet

question 222

Multiple Choice

Table 9-5
Bolton Bank: Partial Balance Sheet
(All figures in $ million)

-Refer to Table 9-5. The required reserve ratio is 10%. By how much could the banking system ultimately increase the money supply if all excess reserves are loaned out, people never withdraw cash, and all loan proceeds are spent?

• A) $30 million
• B) $70 million
• C) $300 million
• D) $700 million

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