(Answered) Suppose the banks balance sheet looks like this and the

Management Studies

Suppose the bank's balance sheet looks like this and the bank is required to hold required reserves of 10% of deposits.

Assets Liabilities

Reserves $750

Deposits $7,000

Loans $6,250

How much are the bank's required reserves?

How much are the bank's excess reserves?

How much more can the bank lend?

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