On a certain date the banking system had $2 billion in excess reserves. The legally required reserve ratio was 12.5 percent. Potentially, if these funds were fully loaned out, the banking system as a whole could increase the money supply by a maximum of:
A) $0.25 billion.
B) $2.5 billion.
C) $12.5 billion.
D) $16 billion
Correct Answer:
Verified
Q212: Checkable deposits are:
A)included in both M1 and
Q213: Which of the following guarantees the deposits
Q214: Bank runs _ bank reserves and _
Q215: A bank receives a demand deposit of
Q216: Which of the following did not contribute
Q218: Credit card balances are:
A)included in both M1
Q219: A bank receives a demand deposit of
Q220: A decrease in savings deposits would _
Q221: If you deposit $20,000 in cash into
Q222: Money is destroyed when:
A)new loans are made.
B)the
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