Find potential deposit creation for the whole system


Suppose the total banking system has $60 million in deposits, a required reserve ratio of 20 percent, and total bank reserves for the whole system of $90 million. Then the potential deposit creation for the whole system is

A) $120 million
B) $78 million
C) $30 million
D) $390 million

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Microeconomics: Find potential deposit creation for the whole system
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