Multiple Choice
Suppose the banking system has $100,000 in outstanding deposits and actual reserves of $35,000. If the required reserve ratio is 20 percent, the maximum amount the banking system can add to the money supply is:
A) $15,000.
B) $75,000.
C) $175,000.
D) $500,000.
Correct Answer:
Verified
Correct Answer:
Verified
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