Suppose the Canadian banking system jointly has $20 million in reserves (cash and deposits at the Bank of Canada) ,all banks have a target reserve ratio of 20%,and there are no excess reserves.What is the amount of deposits in the banking system?
A) $4 million
B) $40 million
C) $80 million
D) $100 million
E) $120 million
Correct Answer:
Verified
Q69: Bank West's Balance Sheet Assets Liabilities
Cash $500
Q70: How can a central bank "create" money?
A)by
Q71: Suppose a commercial bank has a target
Q72: Bank North's Balance Sheet Assets Liabilities
Reserves $300
Q73: Bank West's Balance Sheet Assets Liabilities
Cash $500
Q75: Suppose a commercial bank has a level
Q76: Bank North's Balance Sheet Assets Liabilities
Reserves $300
Q77: Bank North's Balance Sheet Assets Liabilities
Reserves $300
Q78: Consider the following situation in the Canadian
Q79: Bank North's Balance Sheet Assets Liabilities
Reserves $300
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