The reserve ratio is 10 percent. If the bank receives a customer deposit of $80,000, then an immediate effect is:
Group of answer choices:
a. An increase in the bank's reserves of exactly $5,000.
B. A reduction in the bank's total assets of exactly $8,000.
C. An increase in the bank's reserves of exactly $8,000.
D. No change in the bank's total assets or total liabilities.
Group of answer choices:
a. An increase in the bank's reserves of exactly $5,000.
B. A reduction in the bank's total assets of exactly $8,000.
C. An increase in the bank's reserves of exactly $8,000.
D. No change in the bank's total assets or total liabilities.