Scenario 25-2 Imagine That Kristy Deposits $10,000 of Currency into Her Checking

question 261

Multiple Choice

Scenario 25-2

Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.

-Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's excess reserves increase by

• A) $2,000.
• B) $8,000.
• C) $10,000.
• D) $50,000.

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Definitions:

TAC System

A system or method, but without further context, it's unclear as there are multiple uses of this abbreviation.

Fishing Trips

Recreational or commercial outings that involve the catching of fish as the primary activity.

Predetermined Amount

A specific quantity or value that has been established in advance.

ITQs

Individual Transferable Quotas, a system used in resource management whereby individuals or companies are allocated the right to catch or harvest a certain amount of a resource.