Question $2(2$ points$)$

Suppose that Bank of America makes the maximum loan they can from the $$4,000$ in funds you deposited $($from the previous question$).$ Update the T$-$account below to show the initial effect on Bank of America's balance sheet from granting the loan.

Bank of America

$\backslash$table$[[$Assets$,$Liabilities$],[$Reserves$,$Deposits$],[$Loans$,]]$

Assets: $$4,000$

Liabilities: $$4,000$

Assets: $$3,600$

Liabilities: $$4,400$

Assets: $$4,000$

Liabilities: $$7,600$

Assets: $$7,600$

Liabilities: $$7,600$