Table 29-5. -Refer to Table 29-5. Suppose the Bank Faces a Reserve

Multiple Choice

Table 29-5.
-Refer to Table 29-5. Suppose the bank faces a reserve requirement of 10 percent. Starting from the situation as depicted by the T-account, a customer deposits an additional $60,000 into his account at the bank. If the bank takes no other action it will

A) have $64,000 in excess reserves.
B) have $4,000 in excess reserves.
C) be in a position to make new loans equal to $6,000
D) None of the above is correct.