-Refer to Table 10-1. If $500 is deposited into the First Bank of Dawson City, what will happen?
A) The bank will be able to make additional loans totalling $500.
B) Excess reserves initially increase by $500.
C) Required reserves initially increase by $10,000.
D) Excess reserves initially increase by $400.

Question

-Refer to Table 10-1. If $500 is deposited into the First Bank of Dawson City, what will happen?
A) The bank will be able to make additional loans totalling $500. 
B) Excess reserves initially increase by $500. 
C) Required reserves initially increase by $10,000. 
D) Excess reserves initially increase by $400.

Quizplus · Accepted Answer

The Answer of 
-Refer to Table 10-1. If $500 is deposited into the First Bank of Dawson City, what will happen?
A) The bank will be able to make additional loans totalling $500. 
B) Excess reserves initially increase by $500. 
C) Required reserves initially increase by $10,000. 
D) Excess reserves initially increase by $400.