If a single bank faces a required reserve ratio of 20 percent, has total reserves of $500,000,

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If a single bank faces a required 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)?

a. $420,000

b. $100,000

c. $80,000

d. $2,100,000

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Survey Of Economics

ISBN: 9780357720806

11th Edition

Authors: Irvin B. Tucker

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Question Posted: Dec 27, 2023 08:44 AM

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If a single bank faces a required reserve ratio of 20 percent, has total reserves of $500,000,

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Survey Of Economics

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