Multiple Choice
Given a required reserve-deposit ratio of 5% for all banks and assuming individuals hold no cash,total bank reserves of $400 billion can support deposits of
A) $400 billion.
B) $800 billion.
C) $4,000 billion.
D) $8,000 billion.
E) $9,000 billion.
Correct Answer:
Verified
Correct Answer:
Verified
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