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£100 of new cash is issued, which is then deposited in a bank which is...

£100 of new cash is issued, which is then deposited in a bank which is part of a banking system operating a cash ratio of 10%. The maximum possible increase in the money supply which can follow from this transaction, additional to the initial deposit, is

A.

£90

B.

£190

C.

£900

D.

£1000

CIMA BA1 Summary

  • Vendor: CIMA
  • Product: BA1
  • Update on: Jul 28, 2025
  • Questions: 468
Price: $52.5  $149.99
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