Ask Question
24 March, 22:07

Refer to the accompanying consolidated balance sheet for the commercial banking system. assume the required reserve ratio is 10 percent. all figures are in billions. after the deposit of $10 billion of new currency, the maximum amount by which this commercial banking system can expand the supply of money by lending is

+1
Answers (1)
  1. 25 March, 00:06
    0
    We know that the after $10 billion dollars is deposited the excess reserves will increase by $9 billion dollars. Then we have that the maximum amount by which this commercial banking system can expand the supply of money by lending is 1/.10 * $9 billion dollars or $90 billion dollars.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Refer to the accompanying consolidated balance sheet for the commercial banking system. assume the required reserve ratio is 10 percent. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers