The accompanying balance sheet is for the First Federal Bank. Assume the required reserve ratio is 20 percent. This bank can safely expand its loans by a maximum of
A) $20,000.
B) $40,000.
C) $100,000.
D) $200,000.

Question

The accompanying balance sheet is for the First Federal Bank. Assume the required reserve ratio is 20 percent. This bank can safely expand its loans by a maximum of
A) $20,000. 
B) $40,000. 
C) $100,000. 
D) $200,000.

Quizplus · Accepted Answer

The Answer of  The accompanying balance sheet is for the First Federal Bank. Assume the required reserve ratio is 20 percent. This bank can safely expand its loans by a maximum of
A) $20,000. 
B) $40,000. 
C) $100,000. 
D) $200,000.

The Accompanying Balance Sheet Is for the First Federal Bank