Refer to the Accompanying Consolidated Balance Sheet for the Commercial

Multiple Choice

Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions. After a deposit of $10 billion of new currency into a checking
Account in the banking system, excess reserves will increase by

A) $0 billion.
B) $7 billion.
C) $9 billion.
D) $10 billion.