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Suppose that an open economy starts with $1,000 and all of this money is deposited into a First Economy Bank. The T-account for First Economy

Suppose that an open economy starts with $1,000 and all of this money is deposited into a First Economy Bank. The T-account for First Economy bank is shown below.

Assets Liabilities
Required Reserve 100 Deposits: $1000
Loans $400
Treasury Bills $800

Given the information above, how much capital does the bank currently hold and what is the required reserve ratio

a. $300; 1%

b. $1,300; 10%

c. $1,000; 10%

d. $500; 40%

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