Salinas Spencer
12/07/2023 · Primary School
If the reserve requirement is 7 percent, a bank desires to hold no excess reserves, and it receives a new deposit of \( \$ 200 \), it will initially see reserves decrease by \( \$ 200 \). must increase required reserves by \( \$ 28 \). will be able to use this deposit to make new loans amounting to \( \$ 200 \). must increase required reserves by \( \$ 14 \).
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The bank must increase required reserves by \( \$ 14 \).
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