Suppose a Transaction Changes a Bank's Balance Sheet as Indicated

question 118

Multiple Choice

Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent.
$$\begin{array} { | c | c | } \hline \text { Assets } & \text { Liabilities } \\\hline \text { Reserves } + \$ 2,000 & \text { Deposits } + \$ 2,000 \\\hline\end{array}$$
As a result of the transaction,the bank can make a maximum loan of

• A)$0.
• B)$200.
• C)$1,800.
• D)$2,000.

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