Use the Following Balance Sheet for the First Bank of Oz

question 23

Multiple Choice

Use the following balance sheet for the First Bank of Oz:
$\begin{array}{cc|}\text { Assets }&&\text { Liabilities }\\\hline\text { Required reserves } & \$ 15.00 &\text { Deposits }&\$100.00\\\text { Loans } & \$ 85.00\end{array}$
If $1000 is deposited into the First Bank of Oz, then:

• A)assets will increase by $1000
• B)liabilities will decrease by $1000
• C)total reserves will initially increase by $150
• D)required reserves will increase by $850

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