Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent: Refer to the above data. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately:
A) $120,000
B) $213,333
C) $333,500
D) $415,373

Question

Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent:  Refer to the above data. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately:
A) $120,000 
B) $213,333 
C) $333,500 
D) $415,373

Quizplus · Accepted Answer

The Answer of Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent:  Refer to the above data. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately:
A) $120,000 
B) $213,333 
C) $333,500 
D) $415,373

Answer the Question Based on the Following Balance Sheet for the First