-Refer to Table 10-3

question 109

Multiple Choice

-Refer to Table 10-3. Assume that all other banks hold only the required 5 percent of deposits as reserves and people hold only deposits and no currency. If the Bank of Kamloops decides to hold exactly 5 percent in reserves, by how much would the economy's money supply increase?

• A) $500
• B) $1200
• C) $1500
• D) $2000

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Dosage

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