Question
If a single bank faces a requires reserve ratio of 20 percent, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is
If a single bank faces a requires reserve ratio of 20 percent, has total reserves of $500,000, and checkable deposit liabilities of $400,000, what is the maximum amount of money this bank could create (add to the money supply)?
- $420,000.
- $100,000.
- $80,000.
- $2,100,000.
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
2nd Canadian Edition
9781118168875
