If the reserve requirement was 15% and a bank customer makes a deposit of $500, the initial result would be:
a. a $75 increase in required reserves and a $425 increase in excess reserves.
b. a $425 increase in required reserves and a $75 increase in excess reserves.
c. a $75 increase in required reserves and a $3,333 increase in excess reserves.
d. a $3,333 increase in required reserves and a $425 increase in excess reserves.
a
Economics
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