Table 9-6: Deposit Expansion Stages

question 197

Multiple Choice

Table 9-6: Deposit Expansion Stages
In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. New loans made in Stage 1($C) amount to

• A) $100.
• B) $200.
• C) $600.
• D) $800.

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