A withdrawal of cash from a bank that does not put the bank's reserves below the level of required reserves will ______.

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07-04-2022
Business

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A withdrawal of cash from a bank that does not put the bank's reserves below the level of required reserves will ______.

Sagot :

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Parrain Parrain · Answer 1 · 2022-04-11T04:26:19-04:00

If there is a withdrawal of cash from a bank which does not go below the required reserves, the withdrawal will not change money supply but will reduce bank checkable deposits.

What does withdrawing from a bank do?

If one withdraws money from a bank, it will reduce the bank's checkable deposits as these are made of cash that was deposited by entities.

As regards total money supply however, these withdrawals will only have an impact if the withdrawal causes bank reserves to fall below the required reserves.

Find out more on required reserves at https://brainly.com/question/10684321.

A withdrawal of cash from a bank that does not put the bank's reserves below the level of required reserves will ______.

Sagot :

What does withdrawing from a bank do?

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