Table 29-3
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-Refer to Table 29-3

Table 29-3
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$$\begin{array}{l}\text { The First Bank of Rosw ell }\\\begin{array} { l l | l l } & \text { Assets } & { \text { Liabilities } } \\\hline \text { Reserves } & \$ 30,000 & \text { Deposits } & \$ 200,000 \\\text { Loans } & 170,000 & &\end{array}\end{array}$$ ​
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-Refer to Table 29-3. If the bank faces a reserve requirement of 6 percent, then the bank

A) is in a position to make new loans equal to a maximum of $12,000.
B) is in a position to make new loans equal to a maximum of $18,000.
C) has excess reserves of $12,000.
D) has excess reserves of $30,000.

Correct Answer:

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