How the first bank will find its reserves decrease

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A commercial bank has excess reserves of $10,000 and a required reserve ratio of 20%. It grants a loan of $8,000 to a customer, who then writes out a check for $8,000 that is deposited in another bank. The first bank will find its reserves decrease by: $2,000 $3,000 $1,600 $8,000

Reference no: EM13221341

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