A commercial bank holds $500,000 in checkable deposits liabilities and $120,000 in reserves. If the required reserve ratio is 20%, which of the following is the maximum amount by which this single commercial bank and the maximum amount by which the banking system can increase loans? a Amount created by Single Bank: $5,000 and Amount Created by Banking System: $25,000 b Amount created by Single Bank $20,000 and Amount Created by Banking System $80,000 c Amount created by Single Bank $120,000 and Amount Created by Banking System $500,000 d Amount created by Single Bank $30,000 and Amount Created by Banking System $100,000 e Amount created by Single Bank $20,000 and Amount Created by Banking System $100,000
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