The Following Balance Sheet Is for the First National Bank

question 74

Multiple Choice

The following balance sheet is for the First National Bank.Assume the desired reserve ratio is 15 percent.

-Refer to the above data.If a cheque for $14,000 is drawn and cleared against this bank,its reserves and demand deposits will be,respectively:

• A) $50,000 and $120,000.
• B) $50,000 and $106,000.
• C) $36,000 and $120,000.
• D) $36,000 and $106,000.

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