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

question 72

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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Definitions:

Courteous

Showing consideration, respect, and politeness in one's behavior or speech towards others.

Screening

The process of evaluating or analyzing something to determine its suitability or to filter out unwanted or irrelevant elements.

Assistants

Individuals or tools that provide support and help in various tasks or activities.

Adaptation

The process of adjusting or modifying something to suit a new environment, purpose, or conditions.