Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All ﬁgures are in billions. The maximum amount by which the commercial banking
System can expand the supply of money by lending is
A) $30 billion.
B) $23.1 billion.
C) $27 billion.
D) $15 billion.

Question

Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All ﬁgures are in billions. The maximum amount by which the commercial banking
System can expand the supply of money by lending is
A) $30 billion. 
B) $23.1 billion. 
C) $27 billion. 
D) $15 billion.

Quizplus · Accepted Answer

The Answer of  Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All ﬁgures are in billions. The maximum amount by which the commercial banking
System can expand the supply of money by lending is
A) $30 billion. 
B) $23.1 billion. 
C) $27 billion. 
D) $15 billion.

Refer to the Accompanying Consolidated Balance Sheet for the Commercial