Hussain1268 Hussain1268

30-01-2024
Social Studies

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Suppose First Bank currently has $1 million in reserves and $10 million in deposits. The required reserve ratio is 10%. If customers deposit an additional $100 thousand, what will happen?

a) Reserves increase by $100 thousand.
b) Reserves decrease by $100 thousand.
c) Loans increase by $100 thousand.
d) No change in reserves.

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