Use the following example to answer the following questions:
Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.Assume that this institution has a required reserve ratio of 25 percent.
-As a result of this deposit,by how much will the bank's reserves increase?
A) $0
B) $6,250
C) $25,000
D) $31,250
E) $100,000
Correct Answer:
Verified
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