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If the Reserve Ratio Is 5 Percent, Then $2,500 of Additional

Question 336

Multiple Choice

If the reserve ratio is 5 percent, then $2,500 of additional reserves can create up to

A) $62,500 of new money.
B) $50,000 of new money.
C) $45,600 of new money.
D) $37,500 of new money.

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