Multiple Choice
A customer of a bank needs additional currency and cashes a check for $10,000. The reserve requirement is 20%. The bank has no excess reserves. It must
A) refuse the check.
B) get an additional $8,000 of reserves.
C) get an additional $2,000 of reserves.
D) transfer $10,000 of reserves to the Fed.
Correct Answer:
Verified
Correct Answer:
Verified
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Q20: In the fractional reserve system, banks must
Q21: Unemployment is an automatic stabilizers.
Q22: Budgetary deficits always have the effect of<br>A)
Q23: Banking system reserves plus currency held by