Assume that a single chartered bank has no excess reserves and that the desired reserve ratio is 20 percent.If this bank sells a bond for $1,000 to the Bank of Canada, it can expand its loans by a maximum of:
A)$1000
B)$2000
C)$200
D)$800

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The Answer of Assume that a single chartered bank has no excess reserves and that the desired reserve ratio is 20 percent.If this bank sells a bond for $1,000 to the Bank of Canada, it can expand its loans by a maximum of:
A)$1000
B)$2000
C)$200
D)$800

Assume That a Single Chartered Bank Has No Excess Reserves