Consider This T-Account for Your Bank, Which Shows That You

Multiple Choice

Consider this T-account for your bank, which shows that you deposited $100 into your checking account and that your bank then made a $75 loan to Michelle. $$\begin{array} { l l } \text { Assets } & \text { Liabilities } \\+ \$ 100 \text { (cash) } & + \$ 100 \text { (increase in your checking account) } \\+ \$ 75 \text { (loan to Michelle) } & + \$ 75 \text { (increase in Michelle's checking account) }\end{array}$$ Your bank's reserve ratio is:

A) 57.14%
B) 75%
C) 125%.
D) 42.8%.