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. If there is a deposit of $10 billion of new currency
Into checking accounts in the banking system, excess reserves will increase by
A) $1 billion.
B) $2 billion.
C) $9 billion.
D) $10 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. If there is a deposit of $10 billion of new currency
Into checking accounts in the banking system, excess reserves will increase by
A) $1 billion. 
B) $2 billion. 
C) $9 billion. 
D) $10 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. If there is a deposit of $10 billion of new currency
Into checking accounts in the banking system, excess reserves will increase by
A) $1 billion. 
B) $2 billion. 
C) $9 billion. 
D) $10 billion.

The Accompanying Table Is the Consolidated Balance Sheet for the Commercial