Multiple Choice
A bank's checkable deposits shrinks from $40 million to $33 million. What happens to its required reserves if the required reserve ratio is 3%?
A) They fall by about $1.2 million
B) They fall by about $10 million
C) They fall by about $7 million
D) They fall by about $0.2 million
Correct Answer:
Verified
Correct Answer:
Verified
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