Suppose that while vacationing in Switzerland, you won 9,375 Swiss francs, which is the equivalent of $8,000. When you return to the United States, you deposit the $8,000 into your checking account. If the required reserve ratio is 15 percent, this would increase your bank's
A) liabilities by $8,000.
B) excess reserves by $8,000.
C) required reserves by $8,000.
D) assets by $1,200.

Question

Quizplus · Accepted Answer

Depositing $8,000 into a bank account increases the bank's liabilities by that amount, as the bank owes this money to the depositor.

Suppose That While Vacationing in Switzerland, You Won 9,375 Swiss