Table 13.1 XYZ Bank Balance Sheet

question 28

Multiple Choice

Table 13.1 XYZ Bank Balance Sheet
Refer to Table 13.1.If XYZ Bank has a required reserve ratio of 10 percent and loan proceeds are not redeposited,it can legally increase its loans by

• A)$60,000.
• B)$40,000.
• C)$20,000.
• D)$10,000.

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