Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and:.

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12-04-2022
Business

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Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and:.

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topeadeniran2 topeadeniran2 · Answer 1 · 2022-04-14T10:09:19+02:00

When the owners of the bank borrow $100 to supplement their existing reserves, it'll increase the reserves account and debt account.

What is a reserve account?

It should be noted that a reserve account simply means the accumulation of funds that are used for future purpose.

In this case, when the owners of the bank borrow $100 to supplement their existing reserves, it'll increase the reserves account and debt account.

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