Assume that the banking system has a required reserve ratio (RRR) of 0.20, $500,000 in total deposits, and zero excess reserves. If the Fed lowers the required reserve ratio (RRR) to 0.10, how much unused lending capacity does the banking system now have? Multiple Choice O None of these options are correct O $5.000.000.00 $50,000.00 $600,000.00 $500,000.00

Assume that the banking system has a required reserve ratio (RRR) of 0.20, $500,000 in total deposits, and zero excess reserves. If the Fed lowers the required reserve ratio (RRR) to 0.10, how much unused lending capacity does the banking system now have? Multiple Choice O None of these options are correct O $5.000.000.00 $50,000.00 $600,000.00 $500,000.00

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter19: Money Creation

Section: Chapter Questions

Problem 19SQ

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