Question

Refer to the information provided in Scenario 10.1 below to answer the questions that follow SCENARIO 10.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up Required Reserv $10,000.00 $9,000.00 $8,100.00 $7,290.00 New Deposit Bank No. 1 Bank No. 2 Bank No. 3 Bank No. 4 $100,000.00 $0,000.00 $81,000.00 $72, 900.00 Loans $90,000.00 $81,000.00 $72,900.00 $65,610.00 Refer to Scenario 10.1. If the required reserve ratio were changed to 20%, total loans of Bank No. 2 will change to Select one O a. $64,000 O b. $72,000 O c. $74,250 O d, $80,000