Assets Liabilities and Net Worth
Reserves $30 Checkable Deposits $300
Loans 130 Stock Shares 130
Securities 70
Property 200
Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions. After a deposit of $10 billion of new currency into a checking account in the banking system, excess reserves will increase by:_______
a. $7 billion
b. $0 billion
c. $10 billion.
d. $9 billion.