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Question
The reserve ratio is 10 percent. If the bank receives a customer deposit of $100,000, then an immediate effect is
A) a reduction in the bankʹs total assets of exactly $10,000.
B) a reduction in the bankʹs total liabilities of exactly $10,000.
C) no change in the bankʹs total assets or total liabilities.
D) an increase in the bankʹs reserves of exactly $10,000.
Answer
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