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 above data. If the balance sheet was for the whole commercial banking system rather than a single bank, then loans and deposits could expand by a maximum of approximately:

A) $120,000
B) $213,333
C) $333,500
D) $415,373