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Answer the next question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is

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Answer the next question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 20%. All figures are in billions. Liabilities & Net Worth (billions of Assets (billions of dollars) dollars) Reserves $200 Checkable deposits Securities 300Stock shares Loans 500 $1000 400 Property 400 Suppose the Fed wants to increase the money supply by $1,000 billion to drive down interest rates and stimulate the economy. To accomplish this, it could lower the reserve requirement from 20% to A) 12% B) 15% C) 14% D) 10%

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