Select all that apply:
When $100 is deposited into the bank and there is a 20% reserve ratio, what are the effects?
a) Excess reserves increase by $80.
b) There are no changes in required reserves.
c) Excess reserves increase by $100.
d) $20 is kept as required reserves.
e) Checkable deposits increase by $100.

Question

19-06-2024
Business

Answered

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Select all that apply:
When $100 is deposited into the bank and there is a 20% reserve ratio, what are the effects?
a) Excess reserves increase by $80.
b) There are no changes in required reserves.
c) Excess reserves increase by $100.
d) $20 is kept as required reserves.
e) Checkable deposits increase by $100.

Sagot :

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