Total deposits of the banking system

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Reference no: EM13912495

If the total deposits of the banking system are $400 billion, how much money could these reserves support if the required reserve ratio is 0.20, banks hold no excess reserves?

A. $400 billion

B. $1,200 billion

C. $1,600 billion

D. $2,000 billion

Reference no: EM13912495

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