CE Econ 07 (Q36) help

HKCEE Economics 2007, Paper 2, Q36


Thetable below shows the balance sheet of a banking system, which has an excessreserve of $50.


Assets
Reserves $250
Loans $750

Liabilities
Deposits $1,000

Which of the following is correct?
A. The required reserve ratio is 25%.
B. The actual reserve ratio is 20%.
C. If $100 cash is deposited into the banking system, the total amount of
deposits will be $1,500.
D. If $100 is withdrawn from the banking system, the maximum possible
total deposits will be $750.Theanswer is D. I don’t know why option C is incorrect while option Dis correct. Canyou explain to me? Thank you so much!