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
Chapter13: The Federal Reserve System
Section: Chapter Questions
Problem 8WNG
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