Multiple Choice
The following table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent: 
Refer to the above information. If there is a deposit of $10 billion of new currency into checking accounts in the banking system, excess reserves will increase by:
A) $1 billion
B) $2 billion
C) $9 billion
D) $10 billion
Correct Answer:
Verified
Correct Answer:
Verified
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