Exhibit 19-3  Balance Sheet of Tucker National Bank Assume the Fed

Exhibit 19-3  Balance sheet of Tucker National Bank Assume the Fed purchases a government security from a private dealer and pays with a Fed check of $100,000. If this check is deposited by the dealer in the bank shown in Exhibit 19-3, the bank can extend new loans in the amount of:

A) $20,000.
B) $80,000.
C) $100,000.
D) $120,000.