What is the initial impact of a $2,000 deposit if the reserve ratio is 10%?

Question

Quizplus · Accepted Answer

If the reserve ratio is 10%, then 10% of the deposit will be required reserves, and the remaining 90% will be excess reserves.

10% of $2,000 = $200 in required reserves 
90% of $2,000 = $1,800 in excess reserves

Therefore, the initial impact of a $2,000 deposit with a 10% reserve ratio is $1,800 in excess reserves and $200 in required reserves, which is option B.

What Is the Initial Impact of a $2,000 Deposit If