Biology Forums - Study Force

The following table lists some statistics on Boring Bank.

Category	Amount (dollars)
Reserves	________
Demand deposits	200
Long-term debt	________
Cash equivalents	80
Short-term borrowing	95
Long-term investments	230

Refer to the table above. If the required reserve ratio changes to 20 percent, and Boring Bank makes only the necessary changes to comply with regulations, how will the bank's total assets and total liabilities change?

▸ Both total assets and total liabilities will decrease by $20.

▸ Total assets will decrease by $20, and total liabilities will remain the same.

▸ Total assets will increase by $20, and total liabilities will decrease by $20.

▸ Both total assets and total liabilities will remain the same.

Content hidden