If the Banking System Has Demand Deposits of $100,000,total Reserves

question 133

Multiple Choice

If the banking system has demand deposits of $100,000,total reserves equal to $20,000,and a required reserve ratio of 20 percent,the banking system can increase the volume of loans by

• A)$0.
• B)$20,000.
• C)$80,000.
• D)$100,000.

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Definitions:

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Organizational frameworks where entities are ranked according to levels of authority.

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A situation where necessary or desired information is limited or hard to obtain.

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