Suppose a Banking System Has $200 Million in Deposits,a Required

question 93

Multiple Choice

Suppose a banking system has $200 million in deposits,a required reserve ratio of 10 percent,and total bank reserves of $35 million.Then the potential increase in deposit creation for the whole banking system is equal to

• A)$3 million.
• B)$15 million.
• C)$150 million.
• D)$0.

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