If a Commercial Banking System Has $200,000 in Checkable Deposits

question 233

True/False

If a commercial banking system has $200,000 in checkable deposits, actual reserves of $70,000, and a reserve
ratio of 20 percent, then the banking system can expand the supply of money by a maximum of $180,000.

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Definitions:

Margaret Floy Washburn

A prominent early American psychologist known for her work in animal behavior and motor theory development.

Mary Whiton Calkins

An early American psychologist who became the first woman to serve as President of the American Psychological Association.

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