A depositor places $10,000 in cash in a commercial bank, where the required reserve ratio is 10 percent. The
bank sends the $10,000 to its Federal Reserve Bank. As a result, the actual reserves, required reserves, andcess reserves of the bank have been increased by
A) $10,000, $9,000, and $1,000, respectively.
B) $10,000, $500, and $4,500, respectively.
C) $10,000, $1,000, and $9,000, respectively.
D) $1,000, $10,000, and $9,000, respectively.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q169: Q170: The Norfolk Bank has $18,000 in excess Q171: Assume that the required reserve ratio is Q172: Q173: Q175: When loans are repaid at commercial banks, Q176: Assume that the required reserve ratio is Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
A)