Business, 10.11.2019 03:31 icemaniac

If a bank depositor withdraws $1000 of currency from an account, what happens to bank reserves, checkable deposits, and the monetary base? assume that the required reserve ratio on checkable deposits is 10% and banks do not hold any excess reserves.
a) reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains unchanged
b) reserves do not change, checkable deposits fall by $10,000, and the monetary base falls by $1,000
c) reserves do not change, checkable deposits fall by $1000 and the monetary base falls by $10,000
d) reserves fall by $10,000, checkable deposits fall by $1000 and the monetary base remains unchanged

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If a bank depositor withdraws $1000 of currency from an account, what happens to bank reserves, chec...

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