Scenario 10.2 Imagine That Kristy Deposits $10,000 of Currency into Her Chequing

question 226

Multiple Choice

Scenario 10.2
Imagine that Kristy deposits $10,000 of currency into her chequing account deposit at Bank A and that the desired reserve ratio is 20%.
-Refer to Scenario 10.2.As a result of Kristy's deposit, Bank A's excess reserves increase by

• A)$2,000.
• B)$8,000.
• C)$10,000.
• D)$40,000.
• E)$50,000.

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