The accompanying table is the consolidated balance sheet for the commercial banking system. All ﬁgures are in billions. Assume that the required reserve ratio is 10 percent. The maximum amount by which this commercial
Banking system can expand the supply of money by lending is
A) $120,000 billion.
B) $300,000 billion.
C) $600,000 billion.
D) $900,000 billion.

Question

The accompanying table is the consolidated balance sheet for the commercial banking system. All ﬁgures are in billions. Assume that the required reserve ratio is 10 percent. The maximum amount by which this commercial
Banking system can expand the supply of money by lending is
A) $120,000 billion. 
B) $300,000 billion. 
C) $600,000 billion. 
D) $900,000 billion.

Quizplus · Accepted Answer

The Answer of  The accompanying table is the consolidated balance sheet for the commercial banking system. All ﬁgures are in billions. Assume that the required reserve ratio is 10 percent. The maximum amount by which this commercial
Banking system can expand the supply of money by lending is
A) $120,000 billion. 
B) $300,000 billion. 
C) $600,000 billion. 
D) $900,000 billion.

The Accompanying Table Is the Consolidated Balance Sheet for the Commercial