A Banking System Has Total Deposits of $50 Billion and Total

question 67

Multiple Choice

A banking system has total deposits of $50 billion and total reserves of $7 billion. If the required reserve ratio is 10%, what is the maximum deposit creation potential of the banking system?

• A) $2 billion
• B) $14 billion
• C) $20 billion
• D) $70 billion

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Definitions:

Chest Discomfort

A common symptom that can be caused by a wide range of conditions, from muscular strain to heart problems.

Electrocardiogram

A test that records the electrical activity of the heart to detect any heart problems.

Fluoride

A mineral used in dental care to strengthen tooth enamel and prevent cavities, often added to toothpaste, mouthwash, and some public water supplies.

Drinking Water

H2O that is safe and suitable for human consumption, free from contaminants and pathogens.