Multiple Choice
If the reserve ratio is 10 percent and a bank receives a new deposit of $20, what happens to the bank's reserves in the longer term?
A) increase by $2
B) increase by $18
C) increase by $20
D) increase by $200
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q38: In a fractional reserve banking system, how
Q39: Which of the following is included in
Q40: The Bank of Canada is a privately
Q41: What is the difference between commodity money
Q42: Draw a simple T-account for First National
Q44: Which statement best describes bank runs today?<br>A)
Q45: An increase in reserve requirements raises the
Q46: What is one of the functions of
Q47: Bottles of very fine wine have less
Q48: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7554/.jpg" alt=" -Refer to Table