Consider the Following T-Account for a Bank If the Required Reserve Ratio Is 20 Percent,the Bank at Assets

question 140

True/False

Consider the following T-account for a bank:
$\begin{array}{|l|l|}\hline {\text { Assets }} & {\text { Liabilities }} \\\hline \text { Reserves } \$ 1,000 & \text { Deposits } \$ 5,000 \\\hline \text { Loans } \$ 4,000 & \\\hline\end{array}$
If the required reserve ratio is 20 percent,the bank at this point can make no more loans.

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