Use the following to answer questions:
Scenario: First National Bank
First National Bank has $80 million in checkable deposits, $15 million in deposits with the Federal Reserve, $5 million cash in the bank vault, and $5 million in government bonds.
-(Scenario: First National Bank) Look at the scenario First National Bank. Given the bank's minimum reserve ratio, how much can the bank issue in loans?
A) $76 million
B) $8 million
C) $6 million
D) $4 million
Correct Answer:
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