Exhibit 15-1 Balance sheet of First Iliad State Bank

In Exhibit 15-1, if the required reserve ratio is lowered to 8 percent, then First Iliad State will:
A)have to convert loans worth $800,000 to required reserves
B)have to convert loans worth $200,000 to required reserves.
C)be able to make additional loans worth $800,000.
D)be able to make additional loans worth $200,000.
E)not have to act.

Question

Exhibit 15-1 Balance sheet of First Iliad State Bank
                
       
In Exhibit 15-1, if the required reserve ratio is lowered to 8 percent, then First Iliad State will:
A)have to convert loans worth $800,000 to required reserves 
B)have to convert loans worth $200,000 to required reserves. 
C)be able to make additional loans worth $800,000. 
D)be able to make additional loans worth $200,000. 
E)not have to act.

Quizplus · Accepted Answer

The Answer of Exhibit 15-1 Balance sheet of First Iliad State Bank
                
       
In Exhibit 15-1, if the required reserve ratio is lowered to 8 percent, then First Iliad State will:
A)have to convert loans worth $800,000 to required reserves 
B)have to convert loans worth $200,000 to required reserves. 
C)be able to make additional loans worth $800,000. 
D)be able to make additional loans worth $200,000. 
E)not have to act.

Exhibit 15-1 Balance Sheet of First Iliad State Bank