Multiple Choice
Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All figures are in billions of dollars. If the commercial banking system actually loans out
The maximum amount it is able to lend, excess reserves will fall
A) by $28 billion.
B) by $22 billion.
C) by $20 billion.
D) to zero.
Correct Answer:
Verified
Correct Answer:
Verified
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