(Table) SCENARIO: Assume that Empathy State Bank begins with the balance sheet shown and is not fully loaned-up. If this bank is subject to a reserve requirement of 5%, how much more can it loan out if it wants to be fully loaned-up?
A) $2,500
B) $5,000
C) $10,000
D) Nothing. This bank is already fully loaned-up.

Question

(Table) SCENARIO: Assume that Empathy State Bank begins with the balance sheet shown and is not fully loaned-up. If this bank is subject to a reserve requirement of 5%, how much more can it loan out if it wants to be fully loaned-up? 
A) $2,500 
B) $5,000 
C) $10,000 
D) Nothing. This bank is already fully loaned-up.

Quizplus · Accepted Answer

The Answer of (Table) SCENARIO: Assume that Empathy State Bank begins with the balance sheet shown and is not fully loaned-up. If this bank is subject to a reserve requirement of 5%, how much more can it loan out if it wants to be fully loaned-up? 
A) $2,500 
B) $5,000 
C) $10,000 
D) Nothing. This bank is already fully loaned-up.

(Table) SCENARIO: Assume That Empathy State Bank Begins with the Balance