Suppose You Deposit $2000 into a Bank That Has a Reserve

question 98

Multiple Choice

Suppose you deposit $2000 into a bank that has a reserve ratio of 0.1.How does this initially affect the bank's balance sheet?

• A) Reserves rise by $200.
• B) Required reserves rise by $2000.
• C) Deposits rise by $1000.
• D) Excess reserves rise by $1800.

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Definitions:

Adoptive Parents

Individuals or couples who become the legal parents of a child that is biologically not their own through the legal process of adoption.

Neural Impulses

Electrical signals that travel along the neurons, enabling communication between different parts of the nervous system or between the nervous system and the rest of the body.

Synaptic Vesicles

Synaptic Vesicles are small sacs within a neuron that store neurotransmitters, which are released into the synaptic cleft to transmit signals to other neurons.

Neurotransmitters

Chemical messengers in the brain and body that transmit signals across nerve synapses to influence physiological functions and behavior.