The following table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent: Refer to the above information. If there is a deposit of $10 billion of new currency into checking accounts in the banking system, excess reserves will increase by:
A) $1 billion
B) $2 billion
C) $9 billion
D) $10 billion

Question

The following table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent:  Refer to the above information. If there is a deposit of $10 billion of new currency into checking accounts in the banking system, excess reserves will increase by:
A) $1 billion 
B) $2 billion 
C) $9 billion 
D) $10 billion

Quizplus · Accepted Answer

The Answer of The following table is the consolidated balance sheet for the commercial banking system. All figures are in billions. Assume that the required reserve ratio is 10 percent:  Refer to the above information. If there is a deposit of $10 billion of new currency into checking accounts in the banking system, excess reserves will increase by:
A) $1 billion 
B) $2 billion 
C) $9 billion 
D) $10 billion

The Following Table Is the Consolidated Balance Sheet for the Commercial