Multiple Choice
If a bank desires to hold no excess reserves,the reserve requirement is 8 percent,and it receives a new deposit of $500,
A) its required reserves increase by $40.
B) its total reserves initially increase by $460.
C) it will be able to make a new loan of up to $492.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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