lolster3628 lolster3628

16-04-2019
Business

contestada

If the banking system has $50 billion in excess reserves and the reserve ratio is 25 percent, the system's potential deposit creation is:

a. $200 billion.
b. $150 billion.
c. $75 billion.
d. None of the above.

Respuesta :

MrsTriplet MrsTriplet

20-04-2019

Answer: A. $200 billion

Explanation: 25% of $200 billion = $50 billion

($200)(.25) = $50

Multiply the $200 billion by 25% and the answer will be what is left, $50 billion.

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