Business, 11.12.2019 05:31 issagirl05
The reserve requirement is 10% and jack withdraws $5,000 from his checkable bank deposit to pay for a trip to new york city. assume that banks do not hold any excess reserves and that the public holds no currency, only checkable bank deposits
: money supply changes) according to the scenario: money supply changes, which is an accurate description of the bank's balance sheet after the withdrawal?
a) reserves decrease by $5000, and checkable deposits decrease by $5000.
b) reserves decrease by $5000, and checkable deposits increase by $5000.
c) reserves increase by $5000, and checkable deposits decrease by $5000.
d) reserves increase by $500, and checkable deposits increase by $5000.
Answers: 3
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The reserve requirement is 10% and jack withdraws $5,000 from his checkable bank deposit to pay for...
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