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. 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) $9 billion.
B) $45 billion.
C) $36 billion.
D) $90 billion.

Question

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. 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) $9 billion. 
B) $45 billion. 
C) $36 billion. 
D) $90 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 10 percent. All ﬁgures are in billions. 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) $9 billion. 
B) $45 billion. 
C) $36 billion. 
D) $90 billion.

Refer to the Accompanying Consolidated Balance Sheet for the Commercial