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. If the commercial banking system actually loans out
The maximum amount it is able to lend, excess reserves will fall
A) by $28 billion.
B) by $22 billion.
C) by $20 billion.
D) to zero.

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. If the commercial banking system actually loans out
The maximum amount it is able to lend, excess reserves will fall
A) by $28 billion. 
B) by $22 billion. 
C) by $20 billion. 
D) to zero.

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. If the commercial banking system actually loans out
The maximum amount it is able to lend, excess reserves will fall
A) by $28 billion. 
B) by $22 billion. 
C) by $20 billion. 
D) to zero.

Refer to the Accompanying Consolidated Balance Sheet for the Commercial