Refer to the accompanying balance sheet for the ABC National Bank. Assume the required reserve ratio is 20 percent. If the original balance sheet was for the commercial banking system, rather than a single bank, loans and
Checkable deposits could have been expanded by a maximum of
A) $8,000.
B) $15,000.
C) $48,000.
D) $25,000.

Question

Refer to the accompanying balance sheet for the ABC National Bank. Assume the required reserve ratio is 20 percent. If the original balance sheet was for the commercial banking system, rather than a single bank, loans and
Checkable deposits could have been expanded by a maximum of
A) $8,000. 
B) $15,000. 
C) $48,000. 
D) $25,000.

Quizplus · Accepted Answer

The Answer of  Refer to the accompanying balance sheet for the ABC National Bank. Assume the required reserve ratio is 20 percent. If the original balance sheet was for the commercial banking system, rather than a single bank, loans and
Checkable deposits could have been expanded by a maximum of
A) $8,000. 
B) $15,000. 
C) $48,000. 
D) $25,000.

Refer to the Accompanying Balance Sheet for the ABC National