Question: 2. Assume a simplifi ed banking system in which all banks are subject to a uniform required reserve ratio of 30 percent and checkable deposits

2. Assume a simplifi ed banking system in which all banks are subject to a uniform required reserve ratio of 30 percent and checkable deposits are the only form of money. A bank that receives a new deposit of $10,000 is able to extend new loans up to a maximum of

a. $3,000.

b. $7,000.

c. $10,000.

d. $30,000.

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