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.As a result of the withdrawal,required reserves:
A) decrease by $1600.
B) decrease by $6400.
C) decrease by $8000.
D) don't change.
Correct Answer:
Verified
Q141: Which statement is TRUE?
A) Currency in circulation
Q142: Use the following to answer questions:
The reserve
Q143: Use the following to answer questions:
Suppose that
Q144: Use the following to answer questions:
The reserve
Q145: Use the following to answer questions:
Suppose that
Q147: Use the following to answer questions:
The reserve
Q148: Use the following to answer questions:
The reserve
Q149: Suppose the required reserve ratio is 10%
Q150: Use the following to answer questions:
The reserve
Q151: Use the following to answer questions:
The reserve
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