Question 19 (1 point) Scenario 1 Imagine that Kristy deposits $10,000 of currenc

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Question 19 (1 point) Scenario 1 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%. Refer to Scenario 25-2. As a result of Kristy's deposit, Bank A's excess reserves increase by OA) $2,000. B) $8,000. O c) $10,000. D) $50,000. Save Question 20 (1 point) Scenario 1 Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that th ratio is 20%. e required reserve fer to Scenario 25-2. As a result of Kristy's deposit, checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum af OA) $8,000. O B) $10,000. O C) $50,000. D) $100,000. Save Question 21 (1 point)

Explanation / Answer

Answer 1. $2000.

The reserve ratio to be mantained is 20% so when $10000 is deposited, 20% of it i.e., $2000 will increase in the reserves.

Answer 2. $8000.

Since $2000 will go into the required reserve ratio the checking account balance will increase upto $8000.

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