Scenario 21-2:Imagine that Huda deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%
-Refer to Scenario 21 -2. As a result of Huda's deposit, Bank A's excess reserves increase by

Question

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When Huda deposits $10,000, Bank A must keep 20% ($2,000) as required reserves. The remaining $8,000 is excess reserves, which the bank can lend out.

Scenario 21-2:Imagine That Huda Deposits $10,000 of Currency into Her