The Following Is the Balance Sheet of the Whole Banking

question 107

Multiple Choice

The following is the balance sheet of the whole banking system (all figures are in $billions) :

-Refer to the information above to answer this question.Assume that the target reserve ratio is 5 percent.What is the maximum amount by which the commercial banking system can expand the supply of money?

• A)$40.
• B)$25.
• C)$10.
• D)$2.
• E)$38.

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Definitions:

Rails Division

Rails Division typically refers to a segment or department within a company or government responsible for the management, operation, and maintenance of railway systems.

Income From Operations

The profit generated from a company's everyday business activities.

Division 3

Pertaining to a specific categorization within a larger organization or system, often used in sports or hierarchical structuring.

Mixed Cost

A cost that contains both fixed and variable components, changing with the level of activity but not in direct proportion.