An FI is planning to issue $17,000,000 in commercial loans. It will finance all of it by issuing demand deposits. There is a 13 percent average reserve requirement on demand deposits, all reserves are held in the form of cash, and $100,000 of funding is through equity. Which of the following is a simple balance sheet with total assets and total liabilities and equity, assuming this is the only project funded by the bank?
Assets Liabilities
Cash 2,640,230 Demand deposits 19,540,230
Loan 17,000,000 Equity 100,000
Total 19,640,230 19,640,230
Assets Liabilities
Cash 6,410,344 Demand deposits 23,310,344
Loan 17,000,000 Equity 100,000
Total 19,525,287 19,525,287
Assets Liabilities
Cash 2,424,276 Demand deposits 2,210,000
Loan 17,000,000 Equity 17,214,276
Total 19,424,276 19,424,276
Assets Liabilities
Cash 2,525,287 Demand deposits 19,425,287
Loan 17,000,000 Equity 100,000
Total 19,525,287 19,525,287
Assets Liabilities
Cash 2,298,011 Demand deposits 18,259,770
Loan 17,000,000 Equity 1,038,241
Total 19,298,011 19,298,011