Suppose the banks in the Federal Reserve System have $1 billion in transactions accounts and the reserve requirement is 0.10.Ceteris paribus,if the reserve requirement is increased to 0.20,then excess reserves will:
A) Increase by $100 million.
B) Increase by $200 million.
C) Decrease by $100 million.
D) Decrease by $200 million.

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The Answer of Suppose the banks in the Federal Reserve System have $1 billion in transactions accounts and the reserve requirement is 0.10.Ceteris paribus,if the reserve requirement is increased to 0.20,then excess reserves will:
A) Increase by $100 million.
B) Increase by $200 million.
C) Decrease by $100 million.
D) Decrease by $200 million.

Suppose the Banks in the Federal Reserve System Have $1