A deposit of $8,500 is made to Econobank which has a 10 percent reserve rate.Which of the following statements about this deposit is true?
A) Econobank's total reserve increased by $850.
B) Econobank's required reserve increased by $7,650.
C) Econobank's excess reserves increased by $7,650.
D) Econobank's vault cash increased by $850.
Correct Answer:
Verified
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