Multiple Choice
If a bank receives a new deposit of $10,000, and the required reserve ratio is 25 percent, then the new money that can be created by the banking system, including the initial deposit, is:
A) $25,000.
B) $2,500.
C) $4,000.
D) $40,000.
E) $10,000.
Correct Answer:
Verified
Correct Answer:
Verified
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