Scenario 25-2 Imagine That Kristy Deposits $10,000 of Currency into Her Checking

question 261

Multiple Choice

Scenario 25-2

Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.

-Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's excess reserves increase by

• A) $2,000.
• B) $8,000.
• C) $10,000.
• D) $50,000.

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Definitions:

Protons

Positively charged particles found within an atom's nucleus, contributing to the atom's mass and defining the element.

Electrons

Subatomic particles with a negative charge, orbiting the nucleus of an atom, involved in chemical bonds and electricity.

Chemical Equation

A chemical equation is a symbolic representation of a chemical reaction, displaying the reactants and products with their respective chemical formulas.

Reactant

Substance that participates in a chemical reaction. Compare with product.