The following 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: Refer to the above information. 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 following 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:  Refer to the above information. 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 following 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:  Refer to the above information. 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 Following Table Is the Consolidated Balance Sheet for the Commercial