Exhibit 19-7 Lower Walloon National Bank
-In Exhibit 19-7,if Lower Walloon National bank loans out all of its excess reserves to James Brown so that Mr.Brown can upgrade his restaurant,and the money is put into Mr.Brown's account at the Lower Walloon National bank,then the bank will have reserves of:
A) $10,000, loans of $8,000, and checkable deposits of $18,000.
B) $2,000, loans of $4,000, and checkable deposits of $14,000.
C) $6,000, loans of $4,000, and checkable deposits of $10,000.
D) $10,000, loans of $8,000, and checkable deposits of $10,000.
E) $0, loans of $8,000, and checkable deposits of $18,000.
Correct Answer:
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