Assets |
Liabilities |
Cash $ 10,000 Loans $ 140,000 |
Deposits $ 90,000 Capital $ 60,000 |
Total $ 150,000 |
Total $ 150,000 |
The required reserve ratio on all deposits is 10%
a. What, if any, are this bank's excess reserves?
b. How much new amount of loan will this bank be able to create because of the excess reserves?
c. How much new amount of loan will the entire banking system be able to create because of the excess reserves?
d. Answer part a,b and c if the required reserve ratio is changed to 6%.
e. How much new amount of loan will this bank be able to create if some one deposited $4,000 in cash when the RRR is 6%?