A chartered bank has excess reserves of 10%; it grants erves of $500 and a desired reserve ratio a loan of $1,000 to a borrower. If the borrower writes a cheque for $1,000 which is deposited in another chartered bank, the first bank will be short of reserves, after the cheque has been cleared, in the amount of

A chartered bank has excess reserves of $500 and desires a reserve ratio of 10%; it grants a loan of $1,000. If the borrower writes a cheque for $1,000, which is deposited in another chartered bank, the first bank will be short of reserves, after the cheque has been cleared, in the amount of: A) $100 OB) $700 C) $500 D) $1,000 If the price level increases 20%, the value of money decreases V OA) 16.7% OB) 14.1% Oc) 20% OD) 25%