Business, 06.05.2020 07:33 rafaelasoareschagas7
Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.
Assets Liabilities + Net Worth
Reserves $120,000 Checkable Deposits $300,000
Loans 140,000 Stock Shares 200,000
Securities 40,000
Property 200,000
After the deposit of $10 billion of new currency, the maximum amount by which this commercial banking system can expand the supply of money by lending is:
a. $120,000 billion.
b. $300,000 billion.
c. $600,000 billion.
d. $900,000 billion.
Answers: 2
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Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the r...
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