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Business, 27.09.2019 22:00 alialoydd11

Consider the following information about a banking system: new currency deposited in the system = $40 billion, legal reserve ratio = 0.20, excess reserves prior to the currency deposit = $0. with the $40 billion deposit, the banking system will be able to expand the money supply through loans by
a. $128 billion.
b. $160 billion
c. $200 billion.
d. $40 billion.

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