Multiple Choice
Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits?
A) $5,000 billion
B) $4,937.5 billion
C) $5,062.5 billion
D) $4,995 billion
Correct Answer:
Verified
Correct Answer:
Verified
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