Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All ﬁgures are in billions of dollars. The maximum amount by which the commercial
Banking system can expand the supply of money by lending is
A) $250 billion.
B) $350 billion.
C) $450 billion.
D) $600 billion.

Question

Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All ﬁgures are in billions of dollars. The maximum amount by which the commercial
Banking system can expand the supply of money by lending is
A) $250 billion. 
B) $350 billion. 
C) $450 billion. 
D) $600 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 12 percent. All ﬁgures are in billions of dollars. The maximum amount by which the commercial
Banking system can expand the supply of money by lending is
A) $250 billion. 
B) $350 billion. 
C) $450 billion. 
D) $600 billion.

Refer to the Accompanying Consolidated Balance Sheet for the Commercial