Table 13.1 XYZ Bank Balance Sheet

Table 13.1 XYZ Bank Balance Sheet
Refer to Table 13.1.If XYZ Bank has a required reserve ratio of 10 percent and loan proceeds are not redeposited,it can legally increase its loans by

A) $60,000.
B) $40,000.
C) $20,000.
D) $10,000.