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Table 9-5 Bolton Bank: Partial Balance Sheet

Question 222

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Table 9-5
Bolton Bank: Partial Balance Sheet
(All figures in $ million)
Table 9-5 Bolton Bank: Partial Balance Sheet (All figures in $ million) -Refer to Table 9-5. The required reserve ratio is 10%. By how much could the banking system ultimately increase the money supply if all excess reserves are loaned out, people never withdraw cash, and all loan proceeds are spent? A) $30 million B) $70 million C) $300 million D) $700 million
-Refer to Table 9-5. The required reserve ratio is 10%. By how much could the banking system ultimately increase the money supply if all excess reserves are loaned out, people never withdraw cash, and all loan proceeds are spent?


A) $30 million
B) $70 million
C) $300 million
D) $700 million

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