Multiple Choice
Suppose there is a bank panic.Which of the following would not be a consequence of this bank panic?
A) Bank total reserves would decrease.
B) Required reserves would increase.
C) Bank checking account balances would decrease.
D) Individual banks would have to shrink the value of loans they made.
E) The economy would likely enter into a recession.
Correct Answer:
Verified
Correct Answer:
Verified
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