The balance sheet below is for chartered bank EFG.Assume the desired reserve ratio is 25 percent.All figures are in billions. Refer to the above information.The amount by which this single chartered bank and the amount by which the banking system can increase loans are respectively:
A)$140 and, $560.
B)$51 and, $204.
C)$16 and, $376.
D)$16 and, $64.

Question

The balance sheet below is for chartered bank EFG.Assume the desired reserve ratio is 25 percent.All figures are in billions.  Refer to the above information.The amount by which this single chartered bank and the amount by which the banking system can increase loans are respectively:
A)$140 and, $560. 
B)$51 and, $204. 
C)$16 and, $376. 
D)$16 and, $64.

Quizplus · Accepted Answer

The Answer of The balance sheet below is for chartered bank EFG.Assume the desired reserve ratio is 25 percent.All figures are in billions.  Refer to the above information.The amount by which this single chartered bank and the amount by which the banking system can increase loans are respectively:
A)$140 and, $560. 
B)$51 and, $204. 
C)$16 and, $376. 
D)$16 and, $64.

The Balance Sheet Below Is for Chartered Bank EFG