Suppose the reserve requirement is 10 percent and a person deposits $1, 500 in a local bank.That single local bank can now create a maximum of:
A) $150 in additional money by lending $150.
B) $15, 000 in additional money by lending $15, 000.
C) $1, 500 in additional money by lending $1, 500.
D) $1, 350 in additional money by lending $1, 350.
E) $135 in additional money by lending $135.
Correct Answer:
Verified
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