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Use the Following Balance Sheet for the ABC National Bank

Question 37

Multiple Choice

Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.
Use the following balance sheet for the ABC National Bank in answering the next question. Assume the required reserve ratio is 20 percent.    -Refer to the above data. This bank can safely expand its loans by a maximum of: A)  $7,000. B)  $25,000. C)  $12,000. D)  $5,000.
-Refer to the above data. This bank can safely expand its loans by a maximum of:


A) $7,000.
B) $25,000.
C) $12,000.
D) $5,000.

Correct Answer:

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