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A $5 million deposit outflow from a bank has the immediate effect of

a. reducing deposits and securities by $5 million.
b. reducing deposits and capital by $5 million.
c. reducing deposits and reserves by $5 million.
d. reducing deposits and loans by $5 million.
c. reducing deposits and reserves by $5 million.

1 Answer

5 votes

Answer:

C. Reducing deposits and reserves by $5 million.

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