Consider the balance sheet for the Wahoo Bank as presented here. Use a required reserve ratio of 10% and assume that the bank keeps no excess reserves.
Wahoo Bank Balance Sheet
Assets Liabilities
Required reserves $400 Liabilities :
Excess reserves $0 Checking deposits $4.000 $400
Loans Lates $3,600
What will change on the balance sheet if Bennett Withdraws $200 from his checking account?
O Outstanding liabilities decrease by $200.
O Outstanding liabilities increase by $200.
O Required reserves decrease by $200.
O Required reserves increase by $20.
