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Business, 19.08.2019 23:10 Corykids6080

Assume the commercial banking system has checkable deposits of $20 billion and excess reserves of $2 billion when the reserve ratio is 25 percent. if the reserve ratio is then lowered to 20 percent, we can conclude that the:
a. banking system now has excess reserves of $3 billion
b. monetary multiplier has decreased
c. maximum money-creating potential of the banking system has been increased by $7 billion
d. fed has decided that money supply needed to be reduced

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Assume the commercial banking system has checkable deposits of $20 billion and excess reserves of $2...

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