DSE 12-27

The table below shows the balance sheet of a banking system.

Suppose the required reserve ratio for the banking system is 25%. Which of the following statements is correct?

A. The excess reserves of the banking system are $200 million.

B. The actual banking multiplier of the banking system is 4.

C. The banking system can expand its total deposits to $1 600 million.

D. The maximum amount of loans the banking system can make is $1 000 million.