(Answered) Assignmentbalance sheet of the summer

Economics

Assignment

Balance sheet of the Summer Bank

Assets	Liabilities
Cash $ 15,000 Loans $ 185,000	Deposits $ 120,000 Capital $ 80,000
Total $ 200,000	Total $ 200,000

The required reserve ratio on all deposits is 12%

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. Answer part a and b if the required reserve ratio is changed to 8%.

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