Table 9-6: Deposit Expansion Stages
In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. What is the value of $H (the total loans)?
A) $1,000
B) $4,000
C) $5,000
D) $6,000

Question

Table 9-6: Deposit Expansion Stages
  In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. What is the value of $H (the total loans)?
A) $1,000 
B) $4,000 
C) $5,000 
D) $6,000

Quizplus · Accepted Answer

The Answer of Table 9-6: Deposit Expansion Stages
  In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. What is the value of $H (the total loans)?
A) $1,000 
B) $4,000 
C) $5,000 
D) $6,000