The ?Gures in the Table Are for a Single Commercial

question 193

Multiple Choice

$$\begin{array} { | l | r | r | r | } \hline & & \text { Assets } & \text { Liabilities and Net Worth } \\\hline \text { Stock Shares } & \$ 400 & & \\\hline \text { Reserves } & 40 & & \\\hline \text { Property } & 300 & & \\\hline \text { Securities } & 160 & & \\\hline \text { Loans } & 80 & & \\\hline \text { Demand Deposits } & 180 & & \\\hline\end{array}$$ The ?gures in the table are for a single commercial bank, Bank A. All ?gures are in thousands of dollars. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of Bank B, then the actual
Reserves of Bank A will

• A) still be $40,000.
• B) decrease $10,000.
• C) decrease $11,000.
• D) decrease $9,000.

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