The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that it is $50 million sho reserves. If It is unable to obtain any additional reserves, it must reduce deposits and money supply by Multiple Choice O $250 million. $625 million. $500 million. $50 million.

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter25: Money Creation
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The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that it is $50 million short
reserves. If it is unable to obtain any additional reserves, it must reduce deposits and money supply by
Multiple Choice
$250 million.
$625 million.
$500 million.
$50 million.
Transcribed Image Text:The commercial banking system, because of a recent change in the required reserve ratio from 8 percent to 10 percent, finds that it is $50 million short reserves. If it is unable to obtain any additional reserves, it must reduce deposits and money supply by Multiple Choice $250 million. $625 million. $500 million. $50 million.
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