Tahani Bank is one of many banks in a banking system. The required reserve ratio is 25%, and the balance sheet for Tahani Bank is shown here:
Assets
Liabilities & Equity
Loans: $50,000
Deposits: $80,000
Total reserves: $30,000
Owner's equity: $0
Michael deposits $4,000 in the bank.
How much in new loans can this bank make if it decides to fully loan out?