The table given below records the amount of new deposits, the value of required reserves, and total amount loaned out by Banks 1, 2, and 3. Table 12.3
Refer to Table 12.3.What is the total increase in the money supply created in the banking system as a result of the initial deposit of $10, 000 in Bank 1?
A) $10, 000
B) $27, 100
C) $100, 000
D) $90, 000
E) $20, 000
Correct Answer:
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