If the average reserve ratio in the banking system is 20% and thecentral bank (theFed)increases bank reserves by $100,000, what will be the total potential increase in money supply?

Suppose that a bank receives a new deposit of $200 in cash and that the required reserve ratio is 20%. If the bank lends the maximum amount of money allowed, then the money supply (excluding the original deposit) increases by:Choose one answer from the options below.$20$160$800$1000BackNext

If the required reserve ratio is 9%, and the banking system does NOT want to hold excess reserves, how much more can be added to the money supply?Choose one answer from the options below.about $1,333,333about $222,000$90,000$1 million

When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and thebank chooses not to hold any excess reserves but makes loans instead, then, in the bank'sfinal balance sheetA) the assets at the bank increase by $800,000.B) the liabilities of the bank increase by $1,000,000.C) the liabilities of the bank increase by $800,000.D) reserves increase by $160,000.

Suppose people are holding $150 million of currency, total deposits in the banking system are $2,500 million, and bank reserves are $500 million. What is the current supply of money?The current supply of money is $ million.

Suppose a bank has $10,000 in deposits and $1,000 in reserves. The required reserve ratio is 5%. Which of the following occurs if the required reserve ratio is increased to 10%?Question 48Select one:a.The bank's required reserves will decrease to $500.b.The bank's excess reserves will increase to $1,000.c.The bank's required reserves will increase to $1,000.d.The bank's ability to create loans increases by 5%.