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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Definitions:

Manufacturers

Entities engaged in the industrial production of goods, transforming raw materials or components into finished products on a large scale.

Mobile Commerce

The purchase and sale of goods and services via wireless portable devices like smartphones and tablets.

Smartphone

A mobile phone that combines a computer's capabilities with those of a phone, including internet access and a variety of applications.

B2E

Business-to-Employee, electronic transactions and services provided by a company to its employees.