The figures in the table below are for a single commercial bank. All figures are in thousands of dollars. Refer to the data given above. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of another bank, then the actual reserves of the bank above will:
A) Still be $40,000
B) Decrease $10,000
C) Decrease $11,000
D) Decrease $9,000

Question

The figures in the table below are for a single commercial bank. All figures are in thousands of dollars.  Refer to the data given above. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of another bank, then the actual reserves of the bank above will:
A) Still be $40,000 
B) Decrease $10,000 
C) Decrease $11,000 
D) Decrease $9,000

Quizplus · Accepted Answer

The Answer of The figures in the table below are for a single commercial bank. All figures are in thousands of dollars.  Refer to the data given above. If the reserve ratio is 10 percent and a check for $10,000 is drawn and cleared in favor of another bank, then the actual reserves of the bank above will:
A) Still be $40,000 
B) Decrease $10,000 
C) Decrease $11,000 
D) Decrease $9,000

The Figures in the Table Below Are for a Single