Multiple Choice
Suppose you deposit $2000 into a bank that has a reserve ratio of 0.1.How does this initially affect the bank's balance sheet?
A) Reserves rise by $200.
B) Required reserves rise by $2000.
C) Deposits rise by $1000.
D) Excess reserves rise by $1800.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q18: Which of the following is not a
Q32: List the five criteria necessary in order
Q72: Among potential stores of value, money:<br>A)offers the
Q82: The reserves of a bank:<br>A)are usually a
Q88: If Thrifty Bank receives a $10 000
Q93: Assets are<br>A) something owned by a firm.<br>B)
Q102: Which of the following is not one
Q103: 'Broad money' is usually less than M3
Q117: If you save $3 000 for a
Q149: A barter economy is an economy where<br>A)goods