Multiple Choice
Answer the question on the basis of the following information about a banking system: new currency deposited in the system = $40 billion;legal reserve ratio = 0.20;excess reserves prior to the currency deposit = $0. Refer to the information.The $40 billion deposit of currency into checking accounts will create excess reserves of:
A) $20 billion.
B) $32 billion.
C) $40 billion.
D) $0.
Correct Answer:
Verified
Correct Answer:
Verified
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