A banking system has total deposits of $200 billion and total reserves of $50 billion. If the reserve requirement is 20%, what is the deposit creation potential of the banking system?
A) $200 billion
B) $10 billion
C) $20 billion
D) $50 billion

Question

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The Answer of A banking system has total deposits of $200 billion and total reserves of $50 billion. If the reserve requirement is 20%, what is the deposit creation potential of the banking system?
A) $200 billion
B) $10 billion
C) $20 billion
D) $50 billion

A Banking System Has Total Deposits of $200 Billion and Total