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    Exam 12: Money,Banking and the Financial System: Old Problems With New Twists
  5. Question
    If the Reserve Ratio Is 10% and a New Demand
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If the Reserve Ratio Is 10% and a New Demand

Question 13

Question 13

Multiple Choice

If the reserve ratio is 10% and a new demand deposit of $5,000 is made,what is the maximum deposit creation possible?


A) $500
B) $4,500
C) $5,000
D) $45,000
E) $50,000

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