The following is a consolidated balance sheet for the chartered banking system.All figures are in billions.Assume that the desired reserve ratio is 20 percent.
-Refer to the above information.The maximum amount by which this chartered banking system can expand the supply of money by lending is:
A) $120 billion.
B) $300 billion.
C) $480 billion.
D) $600 billion.
Correct Answer:
Verified
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