Question
Suppose a bank has $100,000 in checking account deposits with noexcess reserves and the required reserve ratio is 10 percent. Ifthe Federal Reserve raises the
Suppose a bank has $100,000 in checking account deposits with noexcess reserves and the required reserve ratio is 10 percent. Ifthe Federal Reserve raises the required reserve ratio to 12percent, then the bank will now have excess reserves of
A) $12,000.
B) $0.
C) -$2,000.
D) -$12,000.
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
