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Consider the Following T-Account for National City Bank If the Required Reserve Ratio Is Lowered to 8 Percent,how

Question 140

Multiple Choice

Consider the following T-account for National City Bank:  Assets  Liabilities  Reserves $10,000 Deposits $100,000 Loans $90,000\begin{array}{|ll|ll|}\hline\text { Assets } && \text { Liabilities } \\\hline \text { Reserves } & \$ 10,000 & \text { Deposits } \$ 100,000 \\\hline \text { Loans } & \$ 90,000 & & \\\hline\end{array}
If the required reserve ratio is lowered to 8 percent,how much can National City loan out?


A) $10,000
B) $8,000
C) $2,000
D) $0

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