Table 9-6: Deposit Expansion Stages

question 178

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. What is the value of $E in Stage 4?

• A) $1,000
• B) $1,800
• C) $2,440
• D) $2,952

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