The Balance Sheet Below Is for Chartered Bank ABC

question 77

Multiple Choice

The balance sheet below is for chartered bank ABC.Assume the desired reserve ratio is 20 percent.All figures are in billions.

-Refer to the above information.The amount by which this single chartered bank and the amount by which the banking system can increase loans are respectively:

• A) $5,000 and $110,000.
• B) $5,000 and $25,000.
• C) $5,000 and,22,000.
• D) $5,000 and,27,000.