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Given that the cash reserve ratio is 10 per cent, what is the maximum amount of money ...

Given that the cash reserve ratio is 10 per cent, what is the maximum amount of money that the banking system can create from an initial cash deposit of #1,000.00?
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  • A # 100.00
  • B # 1,000.00
  • C #9,000.00
  • D #10,000.00
Correct Answer: Option D
Explanation:

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