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If the Reserve Ratio Is 5 Percent,then $1,000 of Additional

Question 70

Multiple Choice

If the reserve ratio is 5 percent,then $1,000 of additional reserves can create up to

A) $5,500 of new money.
B) $5,000 of new money.
C) $4,000 of new money.
D) None of the above is correct.

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