Suppose a Banking System Has a Required Reserve Ratio of 0.15.How

question 9

Multiple Choice

Suppose a banking system has a required reserve ratio of 0.15.How much can the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system?

• A)$1 billion.
• B)$150 million.
• C)$15 billion.
• D)$6.67 billion.

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Definitions:

Increase Sales

The process of enhancing the volume of products sold or services rendered in a business to boost revenue.

Old Accounts

Pre-existing customer accounts that may have been inactive or dormant for a period of time, representing potential opportunities for re-engagement or sales.

Abstain From Blaming

The act of deliberately avoiding assigning blame to others, typically in a conflict or difficult situation to promote positive communication or resolution.