If a banking system receives an initial deposit of $150, 000 and the reserve requirement is 40 percent, the total deposit in the banking system (including the initial deposit) can be expanded by _____.
A) $375, 000
B) $150, 000
C) $60, 000
D) $250, 000
E) $450, 000
Correct Answer:
Verified
Q64: Table 12.2 Q65: Table 12.2 Q66: Assume that the reserve requirement is 25 Q67: Excess reserves are equal to: Q68: The table given below records the amount Q70: Assume that the reserve requirement is 10 Q71: Suppose the National Bank has total cash Q72: In the United States, the reserve requirement Q73: Table 12.2 Q74: The table given below records the amount Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)total reserves plus
