Assume the required reserve ratio is 16.67 percent and that the commercial banking system has $110 million incess reserves. The maximum amount of new money that the banking system could create is about
A) $110 million.
B) $330 million.
C) $660 million.
D) $1,353 million.

Question

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The Answer of Assume the required reserve ratio is 16.67 percent and that the commercial banking system has $110 million incess reserves. The maximum amount of new money that the banking system could create is about
A) $110 million.
B) $330 million.
C) $660 million.
D) $1,353 million.

Assume the Required Reserve Ratio Is 16