Table 29-3
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-Refer to Table 29-3

question 131

Multiple Choice

Table 29-3
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$$\begin{array}{l}\text { The First Bank of Rosw ell }\\\begin{array} { l l | l l } & \text { Assets } & { \text { Liabilities } } \\\hline \text { Reserves } & \$ 30,000 & \text { Deposits } & \$ 200,000 \\\text { Loans } & 170,000 & &\end{array}\end{array}$$ ​
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-Refer to Table 29-3. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $60,000 into his account at the bank. If the bank takes no other action it will

• A)have $64,000 in excess reserves.
• B)have $4,000 in excess reserves.
• C)be in a position to make new loans equal to a maximum of $6,000.
• D)be unable to make any new loans.