DSE SP-31

The table below shows the balance sheet of a banking system. Suppose the public holds $500 cash and the amount of its excess reserves is $600.

Which of the following statements about the banking system is correct?

A. The required reserve ratio is 40%.

B. The maximum amount of deposits is $4 000.

C. The maximum banking multiplier is 5.

D. The monetary base is $2 500.