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Business, 29.06.2021 04:30 leapfroggiez

For the following questions, assume there is a 10% required reserve ratio: a. A bank has $300 of reserves, $300 of loans and $600 of deposits, how much excess reserves are they holding? How much could the bank make in additional loans right now? How much will the money supply increase after the money creation process is finished? b. A bank has total reserves of $450 and excess reserves of $150. What is the banks current deposit balance? What is the banks current loan balance? What is the maximum amount of deposits this bank can have?

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