Exhibit 19-2 Balance Sheet of Springfield National Bank
Assets
Liabilities
Total reserves$500
Demand deposits$1,000
Loans$500
In Exhibit 19-2, if Springfield National's customers write checks for $200 and the required reserve ratio is 20 percent, then its required reserves fall to:
A. $0.
B. $40.
C. $160.
D. $460.
Answer: C
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