If All the Banks in the Banking System Collectively Have

question 64

Multiple Choice

If all the banks in the banking system collectively have $500 million in cash reserves,and have a target reserve ratio of 5%,the maximum amount of deposits the banking system can support is

• A)$10 million.
• B)$100 million.
• C)$25 billion.
• D)$100 billion.
• E)$10 billion.

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