Multiple Choice
Suppose a commercial banking system has $100,000 of outstanding checkable deposits and actual reserves of $35,000.If the reserve ratio is 20 percent, the banking system can expand the supply of money by the maximum amount of
A) $122,000.
B) $175,000.
C) $300,000.
D) $75,000.
Correct Answer:
Verified
Correct Answer:
Verified
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