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.If there is a deposit of $10 billion of new currency into chequing accounts in the banking system,excess reserves will increase by:
A) $1 billion.
B) $2 billion.
C) $8 billion.
D) $10 billion.
Correct Answer:
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