Exhibit 15-1 Balance sheet of First Iliad State Bank

In Exhibit 15-1, if the required reserve ratio is raised to 18 percent, then First Iliad State will:
A)have to convert loans worth $800,000 to required reserves.
B)have to convert loans worth $200,000 to required reserves.
C)be able to make additional loans worth $800,000.
D)be able to make additional loans worth $200,000.

Question

Exhibit 15-1 Balance sheet of First Iliad State Bank
               
       
In Exhibit 15-1, if the required reserve ratio is raised to 18 percent, then First Iliad State will:
A)have to convert loans worth $800,000 to required reserves. 
B)have to convert loans worth $200,000 to required reserves. 
C)be able to make additional loans worth $800,000. 
D)be able to make additional loans worth $200,000.

Quizplus · Accepted Answer

The Answer of Exhibit 15-1 Balance sheet of First Iliad State Bank
               
       
In Exhibit 15-1, if the required reserve ratio is raised to 18 percent, then First Iliad State will:
A)have to convert loans worth $800,000 to required reserves. 
B)have to convert loans worth $200,000 to required reserves. 
C)be able to make additional loans worth $800,000. 
D)be able to make additional loans worth $200,000.

Exhibit 15-1 Balance Sheet of First Iliad State Bank