Table 10.2 -Refer to Table 10.2.Suppose a Transaction Changes a Bank's Balance

question 117

Multiple Choice

Table 10.2
-Refer to Table 10.2.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)$800.
• C)$7,200.
• D)$8,000.
• E)$8,888.

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