What Is the Initial Impact on Reserves of a $2,000

question 222

Multiple Choice

What is the initial impact on reserves of a $2,000 deposit if the reserve ratio is 10%?

• A)​$200 in excess reserves and $1,800 in required reserves
• B)​$1,800 in excess reserves and $200 in required reserves
• C)​$2,00 in excess reserves and zero required reserves
• D)​zero excess reserves and $2,000 in required reserves

---

Definitions:

B2B

Business-to-Business, a model involving the exchange of products, services, or information between businesses, rather than between businesses and consumers.

B2C

Business-to-Consumer, a model where businesses sell products or services directly to individual consumers.

C2C

Consumer-to-Consumer (C2C) refers to transactions conducted between two consumers, typically facilitated by a third-party platform such as online marketplaces.

Fundamental Purpose

The core reason or primary objective behind an organization's existence, actions, or proposals.