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Refer to the Accompanying Consolidated Balance Sheet for the Commercial

Question 173

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 the deposit of $10 billion of new currency, the maximum Amount by which this commercial banking system can expand the supply of money by lending is A) $9 billion. B) $45 billion. C) $36 billion. D) $90 billion. 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 the deposit of $10 billion of new currency, the maximum
Amount by which this commercial banking system can expand the supply of money by lending is


A) $9 billion.
B) $45 billion.
C) $36 billion.
D) $90 billion.

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