A Bank Has $50,000 in Checking Account Deposits and Loans

Multiple Choice

A bank has $50,000 in checking account deposits and loans of $49,000. Of the $49,000 loaned out, $43,000 remains in the checking accounts of the loan recipients. The bank has $50,000 cash on hand, and the reserve requirement is 25%. The amount of its required reserves equals:

A) $27,000.
B) $50,000.
C) $26,750.
D) $23,250.