单选题 Assume the reserve requirement is 10 percent. First National Bank has cash (and deposits with the Federal Reserve) of $25 million, loans and securities of $175 million, and demand deposits of $ 200 million. First National is in a position to make additional loans of:

A. $ 5.0 million.
B. $17.5 million.
C. $ 20.0 million.

【正确答案】 A

【答案解析】(1) [Deposits ($ 200) times Reserve Requirement (0.10)] = Required Reserves ($ 20). (2) [Actual Reserves ($ 25) less Required Reserves ($ 20)] = Excess Reserves $ 5). (3) The bank can lend out its excess reserves of $ 5.