Multiple Choice
Suppose Warren Buffet withdraws $1 million from his checking account at Chase Bank.If the required reserve ratio is 20 percent,what is the maximum change in deposits in the banking system?
A) -$5 million
B) -$4 million
C) -$200,000
D) $1 million
E) $5 million
Correct Answer:
Verified
Correct Answer:
Verified
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