The following is the balance sheet of the whole banking system (all figures are in Sbillions) which has a target reserve ratio of 20 percent Assets $120 400 130 50 Liabilities and Equity Demand deposits Equity $600 100 Reserves Loans Securities Land &Buildings er to the information above to answer this question. After the deposit of $20, what is the maximum amount by which this commercial aking system can expand the supply of money?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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7.

options are a. 320 b 16 c. 80 d. 100 e. 0

The following is the balance sheet of the whole banking system (all figures are in Sbillions) which has a target reserve ratio
of 20 percent:
Assets
Reserves
Loans
Securities
Land & Buldings
Liabilities and Equity
Demand deposits
Equity
$120
$600
100
400
130
50
Refer to the information above to answer this question. After the deposit of $20, what is the maximum amount by which this commercial
banking system can expand the supply of money?
Multiple Choice
S120.
S16.
S80
Transcribed Image Text:The following is the balance sheet of the whole banking system (all figures are in Sbillions) which has a target reserve ratio of 20 percent: Assets Reserves Loans Securities Land & Buldings Liabilities and Equity Demand deposits Equity $120 $600 100 400 130 50 Refer to the information above to answer this question. After the deposit of $20, what is the maximum amount by which this commercial banking system can expand the supply of money? Multiple Choice S120. S16. S80
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