Multiple Choice
Suppose Bank ABC has a target reserve ratio of 10%,no excess reserves,and it receives a new deposit of $500 000.This bank will initially expand its loans by
A) $50 000.
B) $450 000.
C) $500 000.
D) $4.5 million.
E) $5 million.
Correct Answer:
Verified
Correct Answer:
Verified
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