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If the Total Deposits of the Banking System Are $400

Question 185

Multiple Choice

If the total deposits of the banking system are $400 billion, how much money could these reserves support if the required reserve ratio is 0.20 and banks hold no excess reserves?


A) $400 billion
B) $1,200 billion
C) $1,600 billion
D) $2,000 billion

Correct Answer:

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