Economics 9708 · AS & A Level · Oligopoly

Oligopoly — practice question

In a banking system, every bank holds 10% of deposits as cash. Bank customers take out $20 000 in cash. Assuming there is no later net change in the amount of notes and coins circulating, by how much must the banks cut their net loans?

  • A$2000
  • B$18 000
  • C$180 000
  • D$220 000

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