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Assume the required reserve ratio is 10 percent and that reserves listed below include required reserves and excess reserves (if there are any) in one
Assume the required reserve ratio is 10 percent and that reserves listed below include required reserves and excess reserves (if there are any) in one account. Numbers are in billions.
AssetsLiabilities and Net worth
Reserves $ 30Checkable Deposits $300
Securities $70Capital Stock$130
Loans$130
Property$200
Refer to the above data. After the deposit, the maximum amount by which this commercial banking system can expand the supply of money by lending is:
A) $9 billion.
B) $45 billion.
C) $36 billion.
D) $90 billion.
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