As a result of the open market sale, Jekyll Bank
A) can create $50,000 of new loans.
B) will have $45,000 of excess reserves.
C) will have to borrow reserves to replenish its reserve deficiency.
D) will have an increase in checkable deposits.
Ans: C) will have to borrow reserves to replenish its reserve deficiency.
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What will be an ideal response?
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