Suppose First National Bank Has Zero Excess Reserves

question 112

Multiple Choice

Suppose First National Bank has zero excess reserves.If the required reserve ratio increases,which of the following will happen immediately?

• A) Bank assets will decrease.
• B) The bank will not have enough required reserves.
• C) The money multiplier will increase.
• D) Total reserves will increase.

---

Definitions:

Chromosomes

Threadlike structures that come in 23 pairs, with one member of each pair coming from each parent. Chromosomes contain the genetic substance DNA.

Human Cell

The basic building block of the human body, which consists of a nucleus and cytoplasm enclosed in a membrane.

Genetic Expression

The process by which information from a gene is used to synthesize functional gene products, such as proteins, which can influence an organism's traits.

Environment

pertains to the surrounding conditions or context in which a person, plant, or animal operates, affecting growth, development, and survival.