Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits? a) $5,000 billion b) $4,937.5 billion c) $5,062.5 billion
Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits? a) $5,000 billion b) $4,937.5 billion c) $5,062.5 billion
Chapter13: The Federal Reserve System
Section: Chapter Questions
Problem 8WNG
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Suppose the banking system currently has $400 billion in reserves, the reserve requirement is 8 percent, and excess reserves amount to $5 billion. What is the level of deposits?
a) $5,000 billion
b) $4,937.5 billion
c) $5,062.5 billion
d) $4,995 billion
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