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Crescent City Bank Is Currently Loaned Up

Question 257

Multiple Choice

Crescent City Bank is currently loaned up. If the required reserve ratio is raised


A) Crescent City Bank's net worth will increase.
B) Crescent City Bank will have excess reserves that it can lend out.
C) Crescent City Bank will still be loaned up because it did not receive any additional deposits.
D) Crescent City Bank's actual reserves will increase, but it will still be loaned up.

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