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

question 216

Multiple Choice

Suppose a transaction changes a bank's balance sheet as indicated in the following T-account, and the desired reserve ratio is 10 percent. As a result of the transaction, the bank can make a maximum loan of

• A)$0.
• B)$200.
• C)$1,800.
• D)$2,000.
• E)$20,000.

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