Question

The required reserve ratio is 10 percent and Charlie deposits​ $3,000 in her checking account. The bank must

A. decrease reserves by​ $3,000.
B. decrease reserves by​ $300.
C. increase reserves by​ $3,000.
D. increase reserves by​ $300.
E. not change its reserves until Charlie decides to withdraw her funds.

Answer 1

I think D. increase reserves by​ $300.