The Following Table Is the Consolidated Balance Sheet for the Commercial

question 34

Multiple Choice

The following table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent: Refer to the above information. The maximum amount by which this commercial banking system can expand the supply of money by lending is:

• A) $120,000 billion
• B) $300,000 billion
• C) $600,000 billion
• D) $900,000 billion

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Definitions:

Article 51

A provision in the United Nations Charter that provides a right to countries to engage in self-defense if attacked.

United Nations Charter

The foundational treaty of the United Nations, signed in 1945, outlining the organization's purposes, principles, and the framework for international cooperation and peacekeeping.

Legal Model

A framework used to understand the creation, interpretation, and application of laws within a legal system.

Torture

The act of inflicting severe physical or psychological pain on someone as a means of punishment, coercion, or obtaining information.