Answer:
$400
Explanation:
Given that
Reserve ratio = 25%
Deposit cash in a bank = $100
So, the maximum amount of increasing the checking account balance would be
= Deposit cash in a bank ÷ Reserve ratio
= $100 ÷ 25%
= $400
We simply divide the cash deposited by the reserve ratio so that the accurate value could come i.e maximum increase checking account balance.