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First National Bank is one of many banks in a banking system. It has no excess reserves, and the reserve requirement is [50%]. It has
First National Bank is one of many banks in a banking system. It has no excess reserves, and the reserve requirement is \[50\%\]. It has \[\$20{,}000\] in bonds. How much in new loans can the bank make if the central bank buys the bank's bonds? Choose 1 answer: Choose 1 answer: (Choice A) \[\$30{,}000\] A \[\$30{,}000\] (Choice B) \[\$10{,}000\] B \[\$10{,}000\] (Choice C) \[\$20{,}000\] C \[\$20{,}000\] (Choice D) \[\$1{,}000\] D \[\$1{,}000\] (Choice E) \[\$0\] E \[\$0\]
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