You withdraw $2,000 from your account. Your bank has a desired reserve ratio of 20 percent. This transaction, by itself, will directly reduce
A) deposits by $2,000.
B) the quantity of money by $2,000.
C) the quantity of money by $1,600.
D) deposits by $1,600.

Question

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The Answer of You withdraw $2,000 from your account. Your bank has a desired reserve ratio of 20 percent. This transaction, by itself, will directly reduce
A) deposits by $2,000.
B) the quantity of money by $2,000.
C) the quantity of money by $1,600.
D) deposits by $1,600.

You Withdraw $2,000 from Your Account