Use the following to answer questions:
Charlotte withdraws $8000 from her chequable bank deposit to pay tuition this semester.Assume that the reserve requirement is 20% and that banks do not hold excess reserves.
-(Scenario: Money Supply Changes II) Refer to Scenario: Money Supply Changes II.After the withdrawal,reserves _____,and chequable deposits _____.
A) increase by $8000;increase by $8000
B) increase by $1600;decrease by $1600
C) decrease by $8000;decrease by $8000
D) decrease by $1600;decrease by $1600
Correct Answer:
Verified
Q153: Use the following to answer questions:
Charlotte withdraws
Q154: Use the following to answer questions:
The reserve
Q155: Use the following to answer questions:
The reserve
Q156: Use the following to answer questions:
Charlotte withdraws
Q157: Use the following to answer questions:
Suppose that
Q159: Use the following to answer questions:
The reserve
Q160: Use the following to answer questions:
The reserve
Q161: Use the following to answer questions:
Suppose that
Q162: Use the following to answer questions:
Suppose that
Q163: The major tools of monetary policy available
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