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Suppose the Beaver Bank, a chartered bank, reports demand - deposit liabilities totaling $ 5 0 0 , 0 0 0 , holds cash reserves

Suppose the Beaver Bank, a chartered bank, reports demand-deposit liabilities totaling $500,000, holds cash reserves of $150,000, and targets a reserve ratio of 25 percent. Given these figures, the potential increase in lending capacity for both the Bank of Maple and the wider Canadian chartered banking system can be calculated as follows:
Multiple Choice
$50,000 and $250,000
$30,000 and $500,000
$100,000 and $500,000
$25,000 and $100,000.
$50,000 and $500,000.
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