Suppose the Banking System Currently Has $300 Billion in Reserves

question 142

Multiple Choice

Suppose the banking system currently has $300 billion in reserves, the reserve requirement is 5 percent, and excess reserves are $30 billion. What is the level of loans?

• A)$270 billion
• B)$5,400 billion
• C)$6,000 billion
• D)$5,100 billion

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