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Refer to the Information Provided in Scenario 10

question 210

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Refer to the information provided in Scenario 10.2 below to answer the questions that follow.
SCENARIO 10.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up. Refer to the information provided in Scenario 10.2 below to answer the questions that follow. SCENARIO 10.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.   -Refer to Scenario 10.2. How much money will be created based on the initial $100,000 deposit? A)  $1 million B)  $2 million C)  $16.67 million D)  $50 million
-Refer to Scenario 10.2. How much money will be created based on the initial $100,000 deposit?


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