The following is a consolidated balance sheet for the chartered banking system.All figures are in billions.Assume that the desired reserve ratio is 20 percent. Refer to the above information.The maximum amount by which this chartered banking system can expand the supply of money by lending is:
A)$120 billion.
B)$300 billion.
C)$480 billion.
D)$600 billion.

Question

The following is a consolidated balance sheet for the chartered banking system.All figures are in billions.Assume that the desired reserve ratio is 20 percent.  Refer to the above information.The maximum amount by which this chartered banking system can expand the supply of money by lending is:
A)$120 billion. 
B)$300 billion. 
C)$480 billion. 
D)$600 billion.

Quizplus · Accepted Answer

The Answer of The following is a consolidated balance sheet for the chartered banking system.All figures are in billions.Assume that the desired reserve ratio is 20 percent.  Refer to the above information.The maximum amount by which this chartered banking system can expand the supply of money by lending is:
A)$120 billion. 
B)$300 billion. 
C)$480 billion. 
D)$600 billion.

The Following Is a Consolidated Balance Sheet for the Chartered