Multiple Choice
Suppose a chartered banking system has $100,000 of outstanding demand deposits and actual cash reserves of $35,000.If the desired reserve ratio is 20 percent, the banking system can expand the supply of money by the maximum amount of:
A) $122,000
B) $175,000
C) $300,000
D) $75,000
Correct Answer:
Verified
Correct Answer:
Verified
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