Refer to the Accompanying Consolidated Balance Sheet for the Commercial

Multiple Choice

Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in billions. If the commercial banking system actually loans the maximum
Amount it is able to lend,

A) reserves and deposits equal to that amount will be gained.
B) excess reserves will be $2.6 billion.
C) excess reserves will fall to $1.7 billion.
D) excess reserves will be reduced to zero.