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Assets Liabilities Reserves +$7,000 Deposits +$50,000 Loans +$46,000 Net Worth +$3,000 Refer to Table above. Consider the following simplified balance sheet for a bank: If
Assets Liabilities Reserves +$7,000 Deposits +$50,000 Loans +$46,000 Net Worth +$3,000 Refer to Table above. Consider the following simplified balance sheet for a bank: If the required reserve ratio is 10 percent, the bank can make a maximum loan of A) $2,000. B) $5,000. C) $6,300. D) $45,000
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