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Exhibit 14-2
Exhibit 14-2 -Refer to Exhibit 14-2

Question 162

Multiple Choice

Exhibit 14-2
Exhibit 14-2
 COUNTYBANK assetsLiabilities and Net Worth cash +$ 1,000 Checkable deposits +$1,000\begin{array}{l}\text { COUNTYBANK}\\\begin{array} {lll } &\text { assets}&&\text {Liabilities and Net Worth }\\\hline \text {cash }&&\text {+\$ 1,000 Checkable deposits }&&+\$1,000\\\end{array}\end{array}
-Refer to Exhibit 14-2.By how much can this bank alone now increase its lending? Assume a required reserve ratio of 10 percent.


A) $1,000
B) $10,000
C) $0
D) $90
E) $900

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