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 commercial bankers decide to hold additionalcess reserves equal to 7 percent of any newly acquired deposits, then the relevant monetary multiplier for this
banking system will be
A) 8.33.
B) 6.66.
C) 5.26.
D) 4.76.

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 commercial bankers decide to hold additionalcess reserves equal to 7 percent of any newly acquired deposits, then the relevant monetary multiplier for this
banking system will be 
A) 8.33. 
B) 6.66. 
C) 5.26. 
D) 4.76.

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 commercial bankers decide to hold additionalcess reserves equal to 7 percent of any newly acquired deposits, then the relevant monetary multiplier for this
banking system will be 
A) 8.33. 
B) 6.66. 
C) 5.26. 
D) 4.76.

Refer to the Accompanying Consolidated Balance Sheet for the Commercial