Assets		Liabilities + Net Worth
Reserves	$120,000	Checkable Deposits	$300,000
Loans	140,000	Stock Shares	200,000
Securities	40,000
Property	200,000

The accompanying balance sheet is for the First Federal Bank.Assume the required reserve ratio is 20 percent. If the originalbank balance sheet was for the whole commercial banking systemrather than a single bank, loans and deposits could have beenexpanded by a maximum of:

• $40,000.

• $100,000.

• $200,000.

• $300,000.