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If an Increase of $10 Million in Excess Reserves Increases

Question 127

Multiple Choice

If an increase of $10 million in excess reserves increases checkable deposits in the banking system by a maximum of $200 million,the required reserve ratio is:


A) 0.
B) 5 percent.
C) 10 percent.
D) 20 percent.
E) 2 percent.

Correct Answer:

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