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(17917) Suppose that banks desire to hold no excess reserves. If the reserve requirement is 5 percent and a bank receives a new deposit of $400, it
A. (i) must increase required reserves by $20.
B. (ii) will initially see reserves increase by $400.
C. (iii) will be able to use this deposit to make new loans amounting to $380.
D. All of (i), (ii), and (iii) are correct.
