If a Bank Increases the Amount of Cash It Has

question 91

Multiple Choice

If a bank increases the amount of cash it has in its vault,how would this affect the bank's balance sheet?

• A) Reserves would increase, liabilities would stay the same, and total assets would increase.
• B) Reserves would decrease, liabilities would stay the same, and total assets would increase.
• C) Reserves would increase, liabilities would decrease, and total assets would decrease.
• D) Reserves would increase, liabilities would stay the same, and total assets would decrease.
• E) Reserves would decrease, liabilities would increase, and total assets would decrease.

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