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Question 57

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Use the following to answer questions .
Exhibit: Reserves, Loans, and Money
Use the following to answer questions . Exhibit: Reserves, Loans, and Money -(Exhibit: Reserves, Loans, and Money) . The required reserve ratio is 10%. What is the maximum amount of new loans that Bolton bank can create and by how much can Bolton initially increase the money supply, assuming that newly created deposits are transferred to another bank? A) $30 million; $30 million B) $70 million; $30 million C) $70 million; $70 million D) $70 million; $700 million
-(Exhibit: Reserves, Loans, and Money) . The required reserve ratio is 10%. What is the maximum amount of new loans that Bolton bank can create and by how much can Bolton initially increase the money supply, assuming that newly created deposits are transferred to another bank?


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

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