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If All the Banks in the Banking System Collectively Have

Question 64

Multiple Choice

If all the banks in the banking system collectively have $500 million in cash reserves,and have a target reserve ratio of 5%,the maximum amount of deposits the banking system can support is


A) $10 million.
B) $100 million.
C) $25 billion.
D) $100 billion.
E) $10 billion.

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