If You Deposit $300 in Your Bank and the Required

question 17

Multiple Choice

If you deposit $300 in your bank and the required reserve ratio is 10%, your bank will have

• A)an increase in required reserves of $300.
• B)an increase in required reserves of $270.
• C)an increase in required reserves of $3000.
• D)an increase in required reserves of $30 and an increase in excess reserves of $270.