The following is the balance sheet of the Leafs Bank
-Refer to the information above to answer this question.Assume the target reserve ratio is 8 percent.If the original balance sheet was for the commercial banking system rather than a single bank,what is the maximum amount by which loans and deposits can be expanded?
A) $4,800.
B) $19,200.
C) $240,000.
D) $60,000.
E) $35,000.
Correct Answer:
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