If your bank faces a 20 percent required reserve ratio and receives a cash deposit of $4,000 into a checkable deposit account, the maximum total amount of money possible after the banking system makes all loans is:
A) $800.
B) $3,200.
C) $4,000.
D) $16,000.
E) $20,000.

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The Answer of If your bank faces a 20 percent required reserve ratio and receives a cash deposit of $4,000 into a checkable deposit account, the maximum total amount of money possible after the banking system makes all loans is:
A) $800.
B) $3,200.
C) $4,000.
D) $16,000.
E) $20,000.

If Your Bank Faces a 20 Percent Required Reserve Ratio