Table 16-3 -Refer to Table 16-3

Table 16-3
$\begin{array}{|c|c|}\hline \text { Assets } & \text { Liabilities } \\\hline \text { Reserves }+\$ 7,000 & \text { Deposits }+\$ 50,000 \\\hline \text { Loans }+\$ 46,000 & \text { Net Worth }+\$ 3,000 \\\hline\end{array}$
-Refer to Table 16-3.Consider the above 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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