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Following a New Deposit of $200,a Commercial Bank Subject to a 15

Question 59

Multiple Choice

Following a new deposit of $200,a commercial bank subject to a 15 percent desired reserve ratio will have what eventual change to its balance sheet?


A) increases in reserves of $30,in loans of $170,and in demand deposits of $200
B) increases in loans of $200 and in demand deposits of $200
C) increases in loans of $850,in reserves of $150 and in deposits of $1000
D) increases in reserves of $170,in demand deposits of $200 and in net worth of $30

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