If a Bank Has $100,000 of Deposits,a Required Reserve Ratio

question 50

Multiple Choice

If a bank has $100,000 of deposits,a required reserve ratio of 20 percent,and $40,000 in reserves,then the maximum deposit outflow it can sustain without altering its balance sheet is

• A) $30,000.
• B) $25,000.
• C) $20,000.
• D) $10,000.