Consider the following T-Account.
What is the maximum loan the bank can make without violating Federal Reserve policy if the Reserve Requirement Rate is a flat 20% no matter the size of the bank or its deposits?
|\$80 Million Loans Receivable||\$150 Million Checkable Deposits|
|\$10 Million Vault Cash||\$20 Million Savings Deposits|
|\$90 Million Federal Reserve Deposits||\$10 Million Owner's Equity|