Multiple Choice
Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 20 percent, an initial deposit of $6,000 will lead to a total increase in deposits of
A) $12,000.
B) $24,000.
C) $30,000.
D) $36,000.
Correct Answer:
Verified
Correct Answer:
Verified
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