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    Exam 15: The Federal Reserve System
  5. Question
    If the Reserve Ratio Is 5%,then an Increase in Bank
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If the Reserve Ratio Is 5%,then an Increase in Bank

Question 214

Question 214

Multiple Choice

If the reserve ratio is 5%,then an increase in bank deposits by $100,000 could expand the money supply by:


A) $5,000.
B) $100,000.
C) $500,000.
D) $2 million.

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