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If the Reserve Ratio Is 8 Percent, Then $4,500 of Additional

Question 231

Multiple Choice

If the reserve ratio is 8 percent, then $4,500 of additional reserves can create up to

A) $4,500 of new money.
B) $48, 913 of new money.
C) $56,250 of new money.
D) $75,000 of new money.

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