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. OA 300 O B. 400 OC 500 O D. none of the above

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. OA 300 O B. 400 OC 500 O D. none of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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.
A. 300
O B. 400
OC. 500
OD. none of the above

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