Suppose a Transaction Changes the Balance Sheet of Wells Fargo

Multiple Choice

Suppose a transaction changes the balance sheet of Wells Fargo bank as indicated in the following T-account. $$\begin{array} { | c | c | } \hline \text { Assets } & \text { Liabilities } \\\hline \text { Reserves } + \$ 1,000 & \text { Deposits } + \$ 1,000 \\\hline\end{array}$$ At this point,what percentage of the new deposits does Wells Fargo hold in reserves?

A) 100 percent
B) 10 percent
C) 5 percent
D) 1 percent