Tracy Williams deposits $500 that was in her sock drawer into achecking account at the local bank

If the bank maintains a serve ration of 10%, how will it respondto the new deposit?

12. (Problem 5b) Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. If the bank maintains a reserve ratio of 10%, how will it respond to the new deposit? O The bank will hold $50 as reserves and lend $500. O The bank will hold no additional reserves and will lend $500. O The bank will hold $50 as reserves and lend $450.

12. (Problem 5b) Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. If the bank maintains a reserve ratio of 10%, how will it respond to the new deposit? The bank will hold $50 as reserves and lend $500. The bank will hold no additional reserves and will lend $500. The bank will hold $50 as reserves and lend $450.