Multiple Choice
If reserves increase by $29 million and the required reserve ratio is 11%,what is the resulting change in checkable deposits (or the money supply) ,assuming that there are no cash leakages and that banks hold zero excess reserves?
A) $319 million
B) $26.3 million
C) $40 million
D) $263.6 million
Correct Answer:
Verified
Correct Answer:
Verified
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