Refer to the Accompanying Consolidated Balance Sheet for the Commercial

question 283

Multiple Choice

Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in billions. The maximum amount by which the commercial banking
System can expand the supply of money by lending is

• A) $30 billion.
• B) $23.1 billion.
• C) $27 billion.
• D) $15 billion.

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