If Reserves Increase by $8 Billion,what Is the Difference in the Resulting

question 101

Multiple Choice

If reserves increase by $8 billion,what is the difference in the resulting change in checkable deposits when the required reserve ratio is 12.5 percent compared to when it is 10 percent?

• A) $12.5 billion
• B) $16 billion
• C) $2.5 billion
• D) $80 billion

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Definitions:

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