Suppose the First National Bank acquires $1,000,000 in new deposits. Which of the following is true?
A) Assets and liabilities increase by $1,000,000.
B) Excess reserves on the new deposits are $500,000.
C) Required reserves on the new deposits are $60,000.
D) Excess reserves on the new deposits are $12,000.
E) Total reserves on the new deposits are $440,000.
Correct Answer:
Verified
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