Suppose the required reserve ratio is 25 percent and the public decides to deposit $10 million cash into checking accounts throughout the banking system. This will allow the banking system to create a maximum amount of additional new deposits equal to
A) $25 million
B) $30 million
C) $250 million
D) $500 million

Question

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The Answer of Suppose the required reserve ratio is 25 percent and the public decides to deposit $10 million cash into checking accounts throughout the banking system. This will allow the banking system to create a maximum amount of additional new deposits equal to
A) $25 million
B) $30 million
C) $250 million
D) $500 million

Suppose the Required Reserve Ratio Is 25 Percent and the Public