Crescent City Bank Is Currently Loaned Up

question 257

Multiple Choice

Crescent City Bank is currently loaned up. If the required reserve ratio is raised

• A) Crescent City Bank's net worth will increase.
• B) Crescent City Bank will have excess reserves that it can lend out.
• C) Crescent City Bank will still be loaned up because it did not receive any additional deposits.
• D) Crescent City Bank's actual reserves will increase, but it will still be loaned up.

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