Solved

A Depositor Places $10,000 in Cash in a Commercial Bank

Question 174

Essay

A depositor places $10,000 in cash in a commercial bank, where the required reserve ratio is 10 percent. The
bank sends the $10,000 to its Federal Reserve Bank. As a result, the actual reserves, required reserves, andcess reserves of the bank have been increased by
A) $10,000, $9,000, and $1,000, respectively.
B) $10,000, $500, and $4,500, respectively.
C) $10,000, $1,000, and $9,000, respectively.
D) $1,000, $10,000, and $9,000, respectively.

Correct Answer:

verifed

Verified

cess reserves of the...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents