Bank North's Balance Sheet Assets Liabilities

Bank North's Balance Sheet Assets Liabilities
Reserves $300 Deposits $2000
Loans $2200 Capital $500
$2500 $2500
TABLE 26-2
Refer to Table 26-2.Assume that Bank North is operating at its target reserve ratio and has no excess reserves.If Bank North receives a new deposit of $400,it can immediately expand its loans by ________ while maintaining its target reserve ratio.

A) $260
B) $272
C) $340
D) $400
E) $700