A bank is currently exactly meeting its reserve requirements of 10%. If the bank has a deposit inflow of $10,000,000, what is the impact on its required reserve position?

A bank is currently exactly meeting its reserve requirements of 10%. If the bank has a deposit inflow of $10,000,000, what is the impact on its required reserve position?



a. It now has excess reserves in the amount of $9,000,000.

b. It now has excess reserves in the amount of $10,000,000.

c. It is now deficient $1,000,000 in required reserves.

d. It is now deficient $9,000,000 in required reserves.

e. There would be no impact on the bank's required reserves.



Answer: A


Learn More :