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11. Southern City Bank has $ 100 million in deposits and has $8 million in excess reserves. If the required reserve ratio
is 5%, which of the following is true?
A. The money multiplier is 20, and the bank can lend out up to $160 million
B. The money multiplier is 8, and the bank can lend out up to $20 million.
C. The money multiplier is 8, and the bank can lend out up to $5 million.
D. The money multiplier is 8, and loans can increase in the banking system by a maximum of $8 million.
E. The money multiplier is 20, and loans can increase in the banking system by a maximum of $160 million.
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11. Southern City Bank has $ 100 million in deposits and has $8 million in excess reserves. If the r...
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