Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank. Assume that this institution has a required reserve ratio of 25 percent. As a result of this deposit, by how much will the bank's required reserves increase? a. $0 b. $31,250 c. $6,250 d. $100,000 e. $25,000
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