Exhibit 19-6 Balance sheet of Tucker National Bank Suppose Connie Rich deposits $100,000 into her checking account in the bank shown in Exhibit 19-6. The result would be a:

Question

Exhibit 19-6  Balance sheet of Tucker National Bank  Suppose Connie Rich deposits $100,000 into her checking account in the bank shown in Exhibit 19-6. The result would be a:

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When a customer makes a deposit, the bank's reserves increase and a portion of this increase must be held as required reserves. The required reserve ratio for banks varies based on the amount of deposits they hold. If we assume a 10% reserve ratio for Tucker National Bank, then a $100,000 deposit would result in a $10,000 increase in required reserves, calculated as: $100,000 x 0.10 = $10,000. This would not result in any change in excess reserves since excess reserves are calculated as total reserves minus required reserves, and both total reserves and required reserves would increase by the same amount.

Exhibit 19-6 Balance Sheet of Tucker National Bank Suppose Connie