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

question 111

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. 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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