Required reserve ratio and money multiplier.
Complete the following T-account to show the impact of this transaction.
First national Bank
Assets
Liabilities
_____
_______
Suppose that before receiving the discount loan, FNB had no excess reserves. The maximum amount of the $10 million that FNB can issue in loan is ____________.
1.$10 million
2.None of the above.
3.$1 million.
4.$100 million.