If the total deposits of the banking system are 400 billion


If the total deposits of the banking system are $400 billion, how much money could these reserves support if the required reserve ratio is 0.20, banks hold no excess reserves?

A. $400 billion

B. $1,200 billion

C. $1,600 billion

D. $2,000 billion

Request for Solution File

Ask an Expert for Answer!!
Business Economics: If the total deposits of the banking system are 400 billion
Reference No:- TGS01210773

Expected delivery within 24 Hours