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If the Reserve Ratio Is 4 Percent,then $81,250 of New

Question 26

Multiple Choice

If the reserve ratio is 4 percent,then $81,250 of new money can be generated by

A) $325 of new reserves.
B) $3,250 of new reserves.
C) $20,312.50 of new reserves.
D) $2,031,250 of new reserves.

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