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The sum of N80,000 is deposited in a bank and the cash ratio of the…

The sum of N80,000 is deposited in a bank and the cash ratio of the banking system is 10%. calculate the sum of money the bank can create from the deposit?
  • A.
    N 100 000
  • B.
    N 800 000
  • C.
    N 1000 000
  • D.
    N 8000 000
Correct Answer: Option B
Explanation