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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explanation: doctrine of respondeat superior is a legal doctrine that is commonly used in tort. this principle makes an employer or principal legally responsible for the wrongful acts done by an employee or agent, if such acts occur within the scope of the employment or agency.