Multiple Choice
The following table shows Free Donut Bank's balance sheet. Free Donut Bank has a required reserve ratio of 20 percent and has $75 in excess reserves.
-Refer to the table above.How do Free Donut Bank's total liabilities change if the bank's cash equivalents increase by $100?
A) Increase by $100
B) Increase by $50
C) Decrease by $100
D) Stay the same
Correct Answer:
Verified
Correct Answer:
Verified
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