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Suppose a transaction changes the balance sheet of Wells Fargo bank as indicated in the following T-account. Liabilities Deposits + $1,000 At this point, what percentage of the new deposits does Wells Fargo hold in reserves? Assets Reserves + $1,000 A) 100 percent B) 10 percent C) 5 percent D) 1 percent

Suppose a transaction changes the balance sheet of Wells Fargo bank as indicated in the following T-account. Liabilities Deposits + $1,000 At this point, what percentage of the new deposits does Wells Fargo hold in reserves? Assets Reserves + $1,000 A) 100 percent B) 10 percent C) 5 percent D) 1 percent

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Suppose a transaction changes the balance sheet of Wells Fargo bank as indicated in the following T-account. Assets Reserves + $1,000 Liabilities Deposits + $1,000 At this point, what percentage of the new deposits does Wells Fargo hold in reserves? A) 100 percent B) 10 percent C) 5 percent D) 1 percent
Transcribed Image Text:Suppose a transaction changes the balance sheet of Wells Fargo bank as indicated in the following T-account. Assets Reserves + $1,000 Liabilities Deposits + $1,000 At this point, what percentage of the new deposits does Wells Fargo hold in reserves? A) 100 percent B) 10 percent C) 5 percent D) 1 percent
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