If the reserve ratio is 10 percent and a bank receives a


If the reserve ratio is 10 percent and a bank receives a new deposit of $800, which of the following will this bank most likely to do?

a) it will increase its required reserves by $8000

b) it will make new loans of $8000

c) it will be able to make new loans of $800

d) it will initially see its total reserves increase by $800.

Request for Solution File

Ask an Expert for Answer!!
Business Economics: If the reserve ratio is 10 percent and a bank receives a
Reference No:- TGS01477406

Expected delivery within 24 Hours