Refer to the accompanying balance sheet for the First National Bank. Assume the reserve ratio is 15 percent. If a check for $14,000 is drawn and cleared against this bank, then its reserves and checkable deposits will be
A) $50,000 and $120,000, respectively.
B) $50,000 and $106,000, respectively.
C) $36,000 and $120,000, respectively.
D) $36,000 and $106,000, respectively.

Question

Refer to the accompanying balance sheet for the First National Bank. Assume the reserve ratio is 15 percent. If a check for $14,000 is drawn and cleared against this bank, then its reserves and checkable deposits will be
A) $50,000 and $120,000, respectively. 
B) $50,000 and $106,000, respectively. 
C) $36,000 and $120,000, respectively. 
D) $36,000 and $106,000, respectively.

Quizplus · Accepted Answer

The Answer of  Refer to the accompanying balance sheet for the First National Bank. Assume the reserve ratio is 15 percent. If a check for $14,000 is drawn and cleared against this bank, then its reserves and checkable deposits will be
A) $50,000 and $120,000, respectively. 
B) $50,000 and $106,000, respectively. 
C) $36,000 and $120,000, respectively. 
D) $36,000 and $106,000, respectively.

Refer to the Accompanying Balance Sheet for the First National