Business, 03.09.2019 02:20 annikafischer
If a bank decides that it wants to hold $1 million of excess reserves, what effect will this have on checkable deposits in the banking system? assume that the required reserve ratio on checkable deposits is 10% and the public's holdings of currency do not change
a) checkable deposits decline by $10 million
b) checkable deposits decline by $100,000
c) checkable deposits decline by $1 million
d) checkable deposits do not change
Answers: 2
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