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Table 10-4 The Following Information Pertains to the Bank of Kingston

Question 78

Multiple Choice

Table 10-4
The following information pertains to the Bank of Kingston.
Table 10-4 The following information pertains to the Bank of Kingston.    -Refer to the Table 10-4.Assume that all other banks hold only the required 4 percent of deposits as reserves,and that people hold only deposits and no currency.If the Bank of Kingston decides to hold reserves of 4 percent,by how much would the economy's money supply increase? A) $50 200 B) $60 000 C) $62 000 D) $65 400
-Refer to the Table 10-4.Assume that all other banks hold only the required 4 percent of deposits as reserves,and that people hold only deposits and no currency.If the Bank of Kingston decides to hold reserves of 4 percent,by how much would the economy's money supply increase?


A) $50 200
B) $60 000
C) $62 000
D) $65 400

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