Economic Money Reserve?

Question

Suppose a bank has $300,000 in deposits, a required reserve ratio of 10 percent, and bank reserves of $55,000. Then the bank can make new loans in the amount of:

Answer:

$270,000.

$245,000.

$55,000.

$30,000.

$25,000.

I chose 30,000??

Answer 1

Initially it can give extra $25,000 loans.

Because with deposits of $300,000 and required reserve ratio of 10 percent (or 0.10) it should keep in reserves 300'000/0.1=$30'000, thus having currently 55'000 it has excess of $55'000-$30'000=$25'000. Later these extra loans will create extra deposits with theoretical limit up to $250'000.

P.S. In reply to message I've received from you.