A commercial bank has checkable-deposit liabilities of $500,000, reserves of $150,000, and a required reserve ratio of 20 percent. The amount by which a single commercial bank and the amount by which the banking system
Can increase loans are
A) $30,000 and $150,000, respectively.
B) $50,000 and $250,000, respectively.
C) $50,000 and $500,000, respectively.
D) $100,000 and $500,000, respectively.