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Suppose the Banking System Currently Has $300 Billion in Reserves;

Question 138

Multiple Choice

Suppose the banking system currently has $300 billion in reserves; the reserve requirement is 10 percent; and excess reserves amount to $3 billion. What is the level of deposits?


A) $3,300 billion
B) $2,970 billion
C) $2,700 billion
D) $2,673 billion

Correct Answer:

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