Initially a bank has a required reserve ratio of 10 percent and no excess reserves.If $1,000 is deposited into the bank,then,ceteris paribus,
A) This bank can increase its loans by $900.
B) This bank can increase its loans by $1,000.
C) Total reserves will increase by $900.
D) Required reserves will increase by $1,000.
Correct Answer:
Verified
Q53: Excess reserves are
A)Total reserves less required reserves.
B)Total
Q54: Suppose University Bank has zero excess reserves.If
Q55: Banks are required to keep a minimum
Q56: The term fractional reserves refers to
A)The fact
Q57: Which of the following explains why banks
Q59: When cash or coins are initially deposited
Q60: For a small bank in a large
Q61: Suppose a bank has $1 million in
Q62: Suppose a banking system has a required
Q63: 
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