Say the required reserve ratio is 10 percent. If you pay back a loan of $20,000 a bank had previously made to you, the act of paying back the loan:
A) adds $2,000 in bank reserves.
B) adds $20,000 in bank reserves.
C) eliminates $2,000 in bank reserves.
D) eliminates $20,000 in bank reserves.
Correct Answer:
Verified
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