Multiple Choice
If the reserve ratio is 7 percent and a bank receives a new deposit of $300, which of the following will this bank most likely do?
A) It will increase required reserves by $2100.
B) It will initially see reserves increase by $279.
C) It will be able to make new loans up to a maximum of $279.
D) It will be able to increase its required reserves by $30.
Correct Answer:
Verified
Correct Answer:
Verified
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