16If a commercial bank has $160 million in deposits, $40 million in actual reserves, and a reserve requirement of 20 percent, that bank can make new loans of:

Select one:

a.$8 million.

b.$32 million.

c.$128 million.

d.$160 million.

20The effect on interest rates and the amount of loans made caused by a drop in a bank's required reserves is shown by the movement from:

Select one:

a.D1 to D2 in Figure A.

b.D1 to D2 in Figure B.

c.S1 to S2 in Figure C.

d.S1 to S2 in Figure D.