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If the Reserve Ratio Is 10 Percent,$1,000 of Additional Reserves

Question 121

Multiple Choice

If the reserve ratio is 10 percent,$1,000 of additional reserves can create


A) $11,000 of new money.
B) $10,000 of new money.
C) $9,000 of new money
D) None of the above is correct.

Correct Answer:

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