Suppose the Banking System Currently Has $300 Billion in Reserves;

question 138

Multiple Choice

Suppose the banking system currently has $300 billion in reserves; the reserve requirement is 10 percent; and excess reserves amount to $3 billion. What is the level of deposits?

• A)$3,300 billion
• B)$2,970 billion
• C)$2,700 billion
• D)$2,673 billion

---

Definitions:

B-lymphocytes

A type of white blood cell that plays a significant role in the humoral immunity component of the adaptive immune system.

Thymus

A small organ located in the upper chest under the sternum, where T-lymphocytes (T cells) mature and differentiate.

Blood Plasma

The liquid component of blood that carries blood cells, nutrients, hormones, and waste products, and is composed of water, proteins, and dissolved substances.

Collecting Ducts

Tubes in the kidneys that play a crucial role in the process of producing urine by collecting it from the nephrons.