The Following Are Simplified Consolidated Balance Sheets for the Chartered

question 169

Multiple Choice

The following are simplified consolidated balance sheets for the chartered banking system and the Bank of Canada.Do not cumulate your answers; that is, do return to the data given in the original balance sheets in answering each question.Assume a desired reserve ratio of 5 percent for the chartered banks.All figures are in billions of dollars.CONSOLIDATED BALANCE SHEET: CHARTERED BANKING SYSTEM BALANCE SHEET: BANK OF CANADA
Refer to the above information.The maximum money-creating potential of the chartered banking system is:

• A)$5
• B)$19
• C)$20
• D)$0

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