If a customer deposits $10,000 in currency into a checking account, the bank's total reserves
A) increase.
B) do not change.
C) are greater than 100 percent.
D) decrease.

Question

Quizplus · Accepted Answer

When a customer deposits currency into a checking account, the bank's total reserves increase because the bank now holds more funds that it can use to meet reserve requirements or lend out.

If a Customer Deposits $10,000 in Currency into a Checking