Suppose the Banking System Currently Has $400 Billion in Reserves

question 222

Multiple Choice

Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 10 percent, and excess reserves are $3 billion. What is the level of loans?

• A)$3,603 billion
• B)$3,600 billion
• C)$3,573 billion
• D)$3,570 billion

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