With a Required Reserve Ratio of 20 Percent,an Increase in Reserves

question 108

Multiple Choice

With a required reserve ratio of 20 percent,an increase in reserves of $10,000 could lead to a maximum increase in checking account deposits in the entire banking system of

• A)$2,000.
• B)$8,000.
• C)$50,000.
• D)$100,000.

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Definitions:

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