Desired reserve ratio, Riley deposits $4,000 cash in her

Desired reserve ratio

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Reference no: EM13839387

Riley deposits $4,000 cash in her checkable deposit at Fershur Bank. If the desired reserve ratio is 5%, Fershur Bank’s

a-desired reserves increase by $4,000

b-assets and its liabilities change In opposite directions

c- liabilities do not change but its asset increase.

d- desired reserves increase by $200 and its excess reserves increase by $3,800

e- excess reserves increase by $4.000

Reference no: EM13839387

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