The following balance sheet shows the assets and liabilities of the ABC National Bank.Assume the desired reserve ratio is 20 percent. Refer to the above information.This bank can safely expand its loans by a maximum of:
A)$7,000
B)$25,000
C)$12,000
D)$5,000

Question

The following balance sheet shows the assets and liabilities of the ABC National Bank.Assume the desired reserve ratio is 20 percent.  Refer to the above information.This bank can safely expand its loans by a maximum of:
A)$7,000 
B)$25,000 
C)$12,000 
D)$5,000

Quizplus · Accepted Answer

The Answer of The following balance sheet shows the assets and liabilities of the ABC National Bank.Assume the desired reserve ratio is 20 percent.  Refer to the above information.This bank can safely expand its loans by a maximum of:
A)$7,000 
B)$25,000 
C)$12,000 
D)$5,000

The Following Balance Sheet Shows the Assets and Liabilities of the ABC