Exhibit 19-5 Balance sheet of Tucker National Bank
Assets
Liabilities
Required reserves$
Checkable deposits$100,000
Excess reserves5,000
Loans 70,000
Total$100,000
Total$100,000
If all banks in the system shown in Exhibit 19-5 were identical to Tucker National Bank, the money multiplier for the system would be:
A. 4.
B. 5.
C. 10.
D. 25.
Answer: A
Economics
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