Table 10-1 -Refer to the Table 10-1.If $400 Is Deposited into the Deposited

question 108

Multiple Choice

Table 10-1
-Refer to the Table 10-1.If $400 is deposited into the First Bank of Dawson City,what will happen?

• A) The bank will be able to make additional loans totalling $400.
• B) Excess reserves initially increase by $400.
• C) Required reserves initially increase by $8000.
• D) Excess reserves initially increase by $340.

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