Answer the Question Based on the Following Consolidated Balance Sheet

Multiple Choice

Answer the question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All figures are in billions of dollars: Refer to the above data. The maximum amount by which the commercial banking system can expand the supply of money by lending is:

A) $250 billion
B) $350 billion
C) $450 billion
D) $600 billion