Owners of a corporation have limited liability for the debts of the business

Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 10 percent. If the Federal Reserve raises the required reserve ratio to 12 percent, then the bank will now have excess reserves of

A) $12,000. B) $0. C) -$2,000. D) -$12,000.

Figure 4-21

A shortage will tend to occur at which price in Figure 4-21?

a.
P₁

b.
P₂

c.
P₃