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The Accompanying Table Is the Consolidated Balance Sheet for the Commercial

Question 240

Multiple Choice

The accompanying table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent. If there is a deposit of $10 billion of new currency Into checking accounts in the banking system, excess reserves will increase by A) $1 billion. B) $2 billion. C) $9 billion. D) $10 billion. The accompanying table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent. If there is a deposit of $10 billion of new currency
Into checking accounts in the banking system, excess reserves will increase by


A) $1 billion.
B) $2 billion.
C) $9 billion.
D) $10 billion.

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