Answer the next question(s) on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions. Assets Liabilities and net worth Reserves $ 30 Checkable $300 deposits Securities 70 Stock shares 130 Loans 130 Property 200
Answer the next question(s) on the basis of the following consolidated balance sheet for the commercial banking system. Assume the
Assets Liabilities and net worth
Reserves $ 30 Checkable $300 deposits
Securities 70 Stock shares 130
Loans 130
Property 200
Refer to the above data. After the deposit, the maximum amount by which this commercial banking system can expand the supply of money by lending is:
- A)$9 billion.
- $45 billion.
- $36 billion.
- $90 billion.
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