On January 3, Logan Industries deposited $1000000 in cash at Federal Savings Bank. No excess reserves were present at the time Logan made the deposit and the required reserve ratio is 10%. What is the maximum amount by which Federal Savings Bank can increase its lending()
A. $100000.
B. $1000000.
C. $900000.
参考答案:C
解析:
Since there are no excess reserves present at the time that Logan deposited the money, Federal Reserve Bank would be required to maintain $ 100000 ($ 1000000 × 0.10 ) on reserve and would be able to loan out or increase the money supply by $ 900000.