Table 10-1

-Refer to the Table 10-1.If $400 is deposited into the First Bank of Dawson City,which of the following happens?
A)The bank will be able to make additional loans totalling $400.
B)Excess reserves initially increase by $400.
C)Required reserves initially increase by $8000.
D)Excess reserves initially increase by $320.

Question

Table 10-1
 
-Refer to the Table 10-1.If $400 is deposited into the First Bank of Dawson City,which of the following happens?
A)The bank will be able to make additional loans totalling $400. 
B)Excess reserves initially increase by $400. 
C)Required reserves initially increase by $8000. 
D)Excess reserves initially increase by $320.

Quizplus · Accepted Answer

The Answer of Table 10-1
 
-Refer to the Table 10-1.If $400 is deposited into the First Bank of Dawson City,which of the following happens?
A)The bank will be able to make additional loans totalling $400. 
B)Excess reserves initially increase by $400. 
C)Required reserves initially increase by $8000. 
D)Excess reserves initially increase by $320.

Table 10-1 -Refer to the Table 10-1.If $400 Is Deposited into the Is