Table 16-2
$\begin{array}{|c|c|}
\hline \text { Assets } & \text { Liabilities } \
\hline \text { Reserves }+\$ 8,000 & \text { Deposits }+\$ 8,000 \
\hline
\end{array}$
-Refer to Table 16-2.Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank can make a maximum loan of

Question

Table 16-2
 $\begin{array}{|c|c|}
\hline \text { Assets } & \text { Liabilities } \
\hline \text { Reserves }+\$ 8,000 & \text { Deposits }+\$ 8,000 \
\hline
\end{array}$
-Refer to Table 16-2.Suppose a transaction changes a bank's balance sheet as indicated in the following T-account,and the required reserve ratio is 10 percent.As a result of the transaction,the bank can make a maximum loan of

Quizplus · Accepted Answer

The required reserve ratio is 10%. So, the bank must hold 10% of its deposits as reserves, which is $800 in this case (10% of $8,000). 
After the transaction, the bank's reserves increased by $2,000 (from $8,000 to $10,000). So, the bank can now loan out the excess reserves, which is $2,000 - $800 = $1,200. 
Therefore, the maximum loan the bank can make is $7,200 ($8,000 - $800 - $1,200). Therefore, option C is correct.

Table 16-2 -Refer to Table 16-2