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15. In a deposits-only monetary system with a 2.5% required reserve ratio, a bank deposit of $1,000 will increase the total amount of bank deposits

15.

In a deposits-only monetary system with a 2.5% required reserve ratio, a bank deposit of $1,000 will increase the total amount of bank deposits by:

A)

$5,000.

B)

$10,000.

C)

$20,000.

D)

$40,000.

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