Use the Following Balance Sheet for the ABC National Bank

Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.

- Refer to the above data. Assuming the bank loans out all of its remaining excess reserves as a checkable deposit, and has a check cleared against it for that amount, its reserves and checkable deposits will now be:

A) $25,000 and $122,000 respectively.
B) $22,000 and $110,000 respectively.
C) $32,000 and $115,000 respectively.
D) $22,000 and $105,000 respectively.