Bank North's Balance Sheet

Multiple Choice

Bank North's Balance Sheet
Assets Liabilities
Reserves $300 Deposits $2000
Loans $2200 Capital $500
$2500 $2500
TABLE 26-2
-Refer to Table 26-2.If Bank North receives a new deposit of $400,its actual reserve ratio immediately becomes

A) 7%.
B) 15%.
C) 25%.
D) 29%.
E) 35%.