Scenario 10.2
Imagine that Kristy deposits $10,000 of currency into her chequing account deposit at Bank A and that the desired reserve ratio is 20%.
-Refer to Scenario 10.2.As a result of Kristy's deposit, chequing account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of
A) $8,000.
B) $10,000.
C) $50,000.
D) $100,000.
E) $500,000.
Correct Answer:
Verified
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