If the required reserve ratio is 20%; excess reserves= 0; and individuals prefer to keep checking deposits than holding cash; then a deposit of 100 B.D will lead to an increase in the total amount of loans equal to.. .B.D. O A. 300 О В. 400 OC. 500 O D. none of the above

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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If the required reserve ratio is 20%; excess reserves= 0; and individuals prefer to keep checking deposits than
holding cash; then a deposit of 100 B.D will lead to an increase in the total amount of loans equal to... .B.D.
O A. 300
О В. 400
O C. 500
O D. none of the above
Transcribed Image Text:If the required reserve ratio is 20%; excess reserves= 0; and individuals prefer to keep checking deposits than holding cash; then a deposit of 100 B.D will lead to an increase in the total amount of loans equal to... .B.D. O A. 300 О В. 400 O C. 500 O D. none of the above
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