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Suppose the Banking System Currently Has $400 Billion in Reserves

Question 222

Multiple Choice

Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 10 percent, and excess reserves are $3 billion. What is the level of loans?


A) $3,603 billion
B) $3,600 billion
C) $3,573 billion
D) $3,570 billion

Correct Answer:

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