If Required Reserves Are 20 Per Cent and the Reserve

question 99

Multiple Choice

If required reserves are 20 per cent and the Reserve Bank buys $10,000 worth of government securities, what is the change in the banks' total reserves?

• A) $8,000
• B) $100,000
• C) $20,000
• D) $10,000
• E) $2,000

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