Bank North's Balance Sheet

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,and that all commercial banks have the same target reserve ratio.If a new deposit to the Canadian banking system of $400 is deposited at Bank North,the total new deposits created in the banking system can be calculated as follows:

A) 300/0.136 = $2205.88.
B) 400/0.15 = $2666.67.
C) 400/0.12 = $3333.33.
D) 700/0.12 = $5833.33.
E) Not enough information to determine.