Use the following balance sheet for XYZ Bank,which is one of many banks in a banking system.
Table 13.1-XYZ Bank balance sheet
-Refer to Table 13.1.With total reserves of $50,000 and a required reserve ratio of 25 percent,potential deposit creation for the banking system is equal to:
A) Zero.
B) $50,000.
C) $200,000.
D) $250,000.

Question

Use the following balance sheet for XYZ Bank,which is one of many banks in a banking system.
Table 13.1-XYZ Bank balance sheet 
-Refer to Table 13.1.With total reserves of $50,000 and a required reserve ratio of 25 percent,potential deposit creation for the banking system is equal to:
A) Zero. 
B) $50,000. 
C) $200,000. 
D) $250,000.

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The Answer of Use the following balance sheet for XYZ Bank,which is one of many banks in a banking system.
Table 13.1-XYZ Bank balance sheet 
-Refer to Table 13.1.With total reserves of $50,000 and a required reserve ratio of 25 percent,potential deposit creation for the banking system is equal to:
A) Zero. 
B) $50,000. 
C) $200,000. 
D) $250,000.

Use the Following Balance Sheet for XYZ Bank,which Is One