FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Financial accounting

Suppose the required reserve ratio is .15 and individuals
hold no cash. Total bank deposits are $100 million and the
banks hold $20 million in reserves. How much more money
can the bank create if it does not hold excess reserves?
A. $33 million
B. $66 million
C. $100 million
D. $667 million
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Transcribed Image Text:Suppose the required reserve ratio is .15 and individuals hold no cash. Total bank deposits are $100 million and the banks hold $20 million in reserves. How much more money can the bank create if it does not hold excess reserves? A. $33 million B. $66 million C. $100 million D. $667 million
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