If the required reserve ratio was 25 percent, after depositing $16,000 in currency in a demand deposit account at a bank that previously had zero excess reserves:
A) it could now issue $64,000 of new loans.
B) it could now issue $16,000 of new loans.
C) it could now issue $12,000 of new loans.
D) it could now issue $4,000 of new loans.
E) it would be unable to issue any new loans.
Correct Answer:
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