Question: Question 1(Multiple Choice Worth 1 points) Assets Liabilities Table: Total Reserves $60,000 Demand Deposits $200,000 Loans $140,000 The balance sheet above shows the financial situation

Question 1(Multiple Choice Worth 1 points)

Assets Liabilities Table:

Total Reserves

$60,000

Demand Deposits

$200,000

Loans

$140,000

The balance sheet above shows the financial situation for the Carland National Bank. The central bank has set a reserve requirement of 10 percent. What is the maximum amount of additional money Carland National Bank can create?

$600,000

$40,000

$200,000

$60,000

$400,000

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