If an Increase of $5 Million in Excess Reserves Increases

question 144

Multiple Choice

If an increase of $5 million in excess reserves increases checkable deposits in the banking system by a maximum of $50 million, the required reserve ratio would be _____

• A) 0 percent.
• B) 5 percent.
• C) 10 percent.
• D) 20 percent.
• E) 2 percent.