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.

---

Definitions:

Young Children

Individuals in the early stages of life, typically ranging from toddlers to elementary school age.

Toys

Objects designed for play, typically used by children, that can range from simple handmade items to complex electronic gadgets.

Product Improvement

The process of making a product better through features, functionality, or quality enhancements.

TV Program

A specific content piece broadcasted on television, such as a series, movie, or show.