The Table Given Below Records the Amount of New Deposits

The table given below records the amount of new deposits, the value of required reserves, and total amount loaned out by Banks 1, 2, and 3.
Table 12.3
$\begin{array}{l}\begin{array}{|c|c|c|c|}\hline \text { Bank } & \text { New Deposit } & \begin{array}{c}\text { Required } \\\text { Reserves }\end{array} & \text { Loans } \\\hline \text { Bank 1 } & \$ 10,000 & \$ 1,000 & \$ 9,000 \\\hline \text { Bank 2 } & \$ 9,000 & \$ 900 & \$ 8,100 \\\hline \text { Bank 3 } & \$ 8,100 & \$ 810 & \$ 7,290 \\\hline\end{array}\\\text { *Assume all excess reserves are loaned out. }\end{array}$
-Refer to Table 12.3. If the reserve requirement changed to 8 percent, then total loans in the economy would be equal to _____.

A) $170,000
B) $115,000
C) $70,000
D) $90,000
E) $150,000

Correct Answer:

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