Assume that the first state bank of chicago requires a 20 percent compensating balance on short-term loans. if you borrow $50,000, at least ____ of the loan amount must be kept on deposit at the bank.

Assume that the first state bank of chicago requires a 20 percent compensating balance on short-term loans. if you borrow $50,000, at least ____ of the loan amount must be kept on deposit at the bank.

a. $10,000

b. $20,000

c. $4,000

d. $1,000

e. $50,000