Multiple Choice
The required reserve ratio is 10 percent and Charlie deposits $3,000 in her checking account.The bank must
A) increase reserves by $3,000.
B) increase reserves by $300.
C) decrease reserves by $3,000.
D) decrease reserves by $300.
E) not change its reserves until Charlie decides to withdraw her funds.
Correct Answer:
Verified
Correct Answer:
Verified
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