Exhibit 19-4 Balance sheet of Tucker National Bank
Assets
Liabilities
Required reserves$ 4,000
Checkable deposits$20,000
Excess reserves16,000
Loans 0
Total$20,000
Total$20,000
In Exhibit 19-4, the bank could make:
A. $1,000 in new loans.
B. $4,000 in new loans.
C. $16,000 in new loans.
D. $20,000 in new loans.
Answer: C
Economics
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