Answer (Choose 1 answer)
(17904) An economy starts with $10,000 in currency. All of this currency is deposited into a single bank, and the bank then makes loans totaling $9,250. The T-account of the bank is shown below.
Refer to Table 29-2. If all banks in the economy have the same reserve ratio as this bank, then a new deposit of $150 into this bank has the potential to increase deposits for all banks by
A. $2,000.00.
B. an infinite amount.
C. $1,666.67.
D. $866.67.
Table 29-2
Assets
$750
Loans
9,250
Deposits
$10,000
Reserves
Liabilities
mantot ni
Exit (18
