The table below shows the data (in millions) for Wells Fargo Bank in September 2017 and September 2018. Suppose that the desired reserve ratio is 3 percent. The data show that
A) the currency drain ratio increased.
B) the Federal Reserve must have increased the required reserve ratio.
C) Wells Fargo had unplanned reserves and could create money in 2017.
D) Wells Fargo was only able to make more loans in 2018 because it gained more deposits.

Question

The table below shows the data (in millions) for Wells Fargo Bank in September 2017 and September 2018. Suppose that the desired reserve ratio is 3 percent.  The data show that
A) the currency drain ratio increased. 
B) the Federal Reserve must have increased the required reserve ratio. 
C) Wells Fargo had unplanned reserves and could create money in 2017. 
D) Wells Fargo was only able to make more loans in 2018 because it gained more deposits.

Quizplus · Accepted Answer

The Answer of The table below shows the data (in millions) for Wells Fargo Bank in September 2017 and September 2018. Suppose that the desired reserve ratio is 3 percent.  The data show that
A) the currency drain ratio increased. 
B) the Federal Reserve must have increased the required reserve ratio. 
C) Wells Fargo had unplanned reserves and could create money in 2017. 
D) Wells Fargo was only able to make more loans in 2018 because it gained more deposits.

The Table Below Shows the Data (In Millions) for Wells