Table 16-3 -Refer to Table 16-3

Table 16-3
$$\begin{array} { | c | c | } \hline \text { Assets } & \text { Liabilities } \\\hline \text { Reserves } \quad \$ 7,000 & \begin{array} { c } \text { Deposits } \\+ \$ 50,000\end{array} \\\hline \text { Loans } & \text { Net Worth } \\+ \$ 46,000 & + \$ 3,000 \\\hline\end{array}$$
-Refer to Table 16-3.Consider the following simplified balance sheet for a bank: If the required reserve ratio is 10 percent,the bank can make a maximum loan of

A) $2,000.
B) $5,000.
C) $6,300.
D) $45,000.

Correct Answer:

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