Say the required reserve ratio is 20 percent. If you pay back a loan of $10,000 a bank had previously made to you, the act of paying back the loan:
A) adds $2,000 in bank reserves.
B) adds $10,000 in bank reserves.
C) eliminates $2,000 in bank reserves.
D) eliminates $10,000 in bank reserves.
Correct Answer:
Verified
Q88: Exhibit 17-2
A bank's assets consist of $1,000,000
Q89: If a bank had demand deposits of
Q90: Exhibit 17-1
A bank's assets consist of $500,000
Q91: If a bank had demand deposits of
Q92: Exhibit 17-1
A bank's assets consist of $500,000
Q94: Exhibit 17-1
A bank's assets consist of $500,000
Q95: Loans are:
A)assets of banks, liabilities of borrowers.
B)liabilities
Q96: Exhibit 17-1
A bank's assets consist of $500,000
Q97: Exhibit 17-1
A bank's assets consist of $500,000
Q98: Exhibit 17-1
A bank's assets consist of $500,000
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