About the reserve ratio, If the reserve ratio is 10 percent

About the reserve ratio

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Reference no: EM131099387

If the reserve ratio is 10 percent and a bank receives a new deposit of $800, which of the following will this bank most likely to do?

a) it will increase its required reserves by $8000

b) it will make new loans of $8000

c) it will be able to make new loans of $800

d) it will initially see its total reserves increase by $800.

Reference no: EM131099387

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