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Answer the Question on the Basis of the Following Consolidated

Question 64

Multiple Choice

Answer the question on the basis of the following consolidated balance sheet of the commercial banking system.Assume that the reserve requirement is 10 percent.All figures are in billions and each question should be answered independently of changes specified in any preceding ones.  Assets Reserves Securities Loans Property$60140260400 Liabilities & Net Worth  Checkable Deposits Stock Shares$600260\begin{array}{c}\begin{array}{lll}\quad\quad\quad\underline{\text { Assets}}\\\text { Reserves}\\\text { Securities}\\\text { Loans}\\\text { Property} \end{array}\begin{array}{l}\\\$ 60 \\140 \\260 \\400 \end{array}\begin{array}{lll}\quad\quad \underline{\text { Liabilities \& Net Worth }}\\\text { Checkable Deposits}\\\text { Stock Shares}\\\\\\\end{array}\begin{array}{lll}\\\$600\\260\\\\\\\end{array}\end{array}
Refer to the given data.The monetary multiplier for the commercial banking system is:


A) 5.
B) 10.
C) 12.5.
D) 20.

Correct Answer:

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