Question: Refer to Table 2 9 - 4 . Suppose the bank faces a reserve requirement of 1 0 percent. Starting from the situation as depicted

Refer to Table 29-4. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $50,000 into his account at the bank. If the bank takes no other action it will
A. have $65,000 in excess reserves. B. have $55,000 in excess reserves. C. need to raise an additional $5,000 of reserves to meet the reserve requirement ratio D. None of the above is correct.

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