Multiple Choice
If a bank desires to hold no excess reserves, the reserve requirement is 5 percent, and it receives a new deposit of $1,000
A) its required reserves increase by $50.
B) its total reserves initially increase by $1,000.
C) it will be able to make a new loan of up to $950.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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