Refer to the accompanying balance sheet for the First National Bank. Assume the reserve ratio is 15 percent. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits
Could expand by a maximum of approximately
A) $120,000.
B) $213,333.
C) $333,500.
D) $415,373.

Question

Refer to the accompanying balance sheet for the First National Bank. Assume the reserve ratio is 15 percent. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits
Could expand by a maximum of approximately
A) $120,000. 
B) $213,333. 
C) $333,500. 
D) $415,373.

Quizplus · Accepted Answer

The Answer of  Refer to the accompanying balance sheet for the First National Bank. Assume the reserve ratio is 15 percent. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits
Could expand by a maximum of approximately
A) $120,000. 
B) $213,333. 
C) $333,500. 
D) $415,373.

Refer to the Accompanying Balance Sheet for the First National