Multiple Choice
If the reserve ratio is 20 percent and reserves in the commercial banking system increase by $10,000, the maximum possible expansion of demand deposits is
A) $10,000.
B) $80,000.
C) $50,000.
D) $500,000.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q307: How many Federal Reserve district banks are
Q308: A property of an asset that makes
Q309: To be accepted as money, an item
Q310: Which of the following is NOT part
Q311: Which one of the following is NOT
Q313: Who benefits from the process of financial
Q314: The government agency that insures deposits held
Q315: The Fed sells $1 million in bonds
Q316: Lenders generally want borrowers to agree to
Q317: A barter arrangement simply means<br>A) a direct