Scenario 14-2 Imagine That Kristy Deposits $10,000 of Currency into Her Checking

question 107

Multiple Choice

Scenario 14-2
Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.
-Refer to Scenario 14-2.As a result of Kristy's deposit,Bank A's required reserves increase by

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

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Definitions:

Mutual Consideration

In contract law, mutual consideration is the exchange of value or promises between parties that is a requisite for the formation of a binding contract.

Past-due Undisputed Debt

A debt that is acknowledged by the debtor but has not been paid by the agreed-upon due date.

Promisor

An entity or individual who makes a promise to perform a certain action or duty within a contract.

Promisee

The person to whom a promise or agreement is made, especially in a contract.