A $100 deposit into my checking account at My Bank increases my checkable deposits by $100,and the bank's ________ by $100.
A)reserves
B)loans
C)capital
D)securities

Question

Quizplus · Accepted Answer

The bank's reserves increase by $100 because they now have an additional $100 in deposits, which they are required to hold a fraction of as reserves according to reserve requirements set by the Federal Reserve. The deposit does not directly affect the bank's loans, capital, or securities.

A $100 Deposit into My Checking Account at My Bank