If the reserve requirement was 5% and a bank customer makes a deposit of $1,000, the initial result would be:
A) a $950 increase in required reserves and a $50 increase in excess reserves.
B) a $20,000 increase in required reserves and a $950 increase in excess reserves.
C) a $50 increase in required reserves and a $20,000 increase in excess reserves.
D) none of the above
Correct Answer:
Verified
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