Answer the Question Based on the Following Balance Sheet for the First

Multiple Choice

Answer the question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent: Refer to the data above. If a check for $14,000 is drawn and cleared against this bank, then its reserves and checkable deposits will be, respectively:

A) $50,000 and $120,000
B) $50,000 and $106,000
C) $36,000 and $120,000
D) $36,000 and $106,000