Use the Following to Answer Questions

question 424

Multiple Choice

Use the following to answer questions:
-(Table: Assets and Liabilities of the Banking System) Refer to Table: Assets and Liabilities of the Banking System.If the reserve ratio is 5% and the banking system does NOT want to hold excess reserves,how much more can be added to the money supply?

• A) about $667000
• B) about $111000
• C) $250000
• D) $1 million

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Definitions:

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