Suppose that while vacationing in Switzerland, you won 9,375 Swiss francs, which is the equivalent of $8,000. When you return to the United States, you deposit the $8,000 into your checking account. If the required reserve ratio is 15 percent, this would increase your bank's:
A. liabilities by $8,000.
B. excess reserves by $8,000.
C. required reserves by $8,000.
D. assets by $1,200.
Answer: A
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