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ABC Bank Balance Sheet Assets Liabilities Reserves $25,000 Demand Deposits $100,000 Desired $20,000 Excess 5,000 Loans 75,000 TotalAssels $100,000 Total Liabilities $100,000 Assume a 20%
ABC Bank Balance Sheet Assets Liabilities Reserves $25,000 Demand Deposits $100,000 Desired $20,000 Excess 5,000 Loans 75,000 TotalAssels $100,000 Total Liabilities $100,000 Assume a 20% desired reserve ratio. In Table 13 1, suppose that $20,000 in new deposits is received by the bank. It there were no other changes in the balance sheet, then the bank would be in a position to make new loans in the amount of O A. $1?,000. 0 B. $9,000. O C. $15,000. 0 D. $21,000
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