Suppose a bank has a 5 percent reserve ratio,$4000 in deposits,and it loans out all it can,given the reserve ratio.Which of the following describes the bank's assets?
A) It has $800 in reserves and $16 000 in loans.
B) It has $200 in reserves and $3800 in loans.
C) It has $200 in reserves and $4000 in loans.
D) It has $800 in reserves and $3200 in loans.
Correct Answer:
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