Refer to the accompanying balance sheet for the ABC National Bank. Assume the required reserve ratio is 20 percent. This bank can safely expand its loans by a maximum of
A) $7,000.
B) $25,000.
C) $12,000.
D) $5,000.

Question

Refer to the accompanying balance sheet for the ABC National Bank. Assume the required reserve ratio is 20 percent. This bank can safely expand its loans by a maximum of
A) $7,000. 
B) $25,000. 
C) $12,000. 
D) $5,000.

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The Answer of  Refer to the accompanying balance sheet for the ABC National Bank. Assume the required reserve ratio is 20 percent. This bank can safely expand its loans by a maximum of
A) $7,000. 
B) $25,000. 
C) $12,000. 
D) $5,000.

Refer to the Accompanying Balance Sheet for the ABC National