I cannot for the life of me find out where they got 25,000 as the answer? I get how to get the 5. 1/.20 = 5 but then they mult. 5000 x 5 = 25,000. Where is the 5,000 coming from? Thank you!

Ch 33 HW Money Creation 20th ed Student 1. Use the following balance sheet for the ABC National Bank in answering the question. Assume the required reserve ratio is 20 percent. Assets Liabilities and Net Worth Reserves $27,000 Checkable Deposits $110,000 Loans Securities 33,000 Property 200,000 50,000 Stock Shares 200,000 Refer to the data. If the original balance sheet was for the commercial banking system, rather than a single bank loans and checkable deposits could have been expanded by a maximum of A. $8,000. B. $15,000. C. $48,000 D, s25,000 Het