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Suppose the Banking System Currently Has $300 Billion in Reserves

Question 142

Multiple Choice

Suppose the banking system currently has $300 billion in reserves, the reserve requirement is 5 percent, and excess reserves are $30 billion. What is the level of loans?


A) $270 billion
B) $5,400 billion
C) $6,000 billion
D) $5,100 billion

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