Multiple Choice
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
Correct Answer:
Verified
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