Suppose That the Banking System Has Excess Reserves of $10

question 80

Multiple Choice

Suppose that the banking system has excess reserves of $10 million, the desired reserve ratio is 10 percent and the currency drain ratio is 40 percent. By how much will the quantity of money increase?

• A)$12.5 million
• B)$28 million
• C)$50 million
• D)$40 million
• E)$22 million

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Definitions:

Department Column

In databases or spreadsheets, a column specifically dedicated to categorizing entries by department name or code for organizational purposes.

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Interactive elements within software applications that allow users to sort or filter displayed data according to various criteria.

Total Row

A feature in spreadsheet applications that automatically calculates and displays a total, average, or other aggregate function for data in a column.