The Table Given Below Shows the Assets and Liabilities of the National

question 62

Multiple Choice

The table given below shows the assets and liabilities of the National Bank.Assume that this is the only bank in the economy. Table 13.2
Refer to Table 13.2.If the reserve requirement is 10 percent, how much can the whole banking system expand the money supply?

• A)$21, 500
• B)$54, 500
• C)$11, 800
• D)$16, 050
• E)$5, 450