Multiple Choice
Assume that the required reserve ratio is 10%. An increase of $1,000 in the banking system's excess reserves may result in a total expansion of new deposits for the banking system as a whole by as much as
A) $1,000.
B) $9,000.
C) $10,000.
D) $100,000.
Correct Answer:
Verified
Correct Answer:
Verified
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