Balance sheet of the Summer bank Assets Liabilities Cash $ 8,000 Deposited with the Fed $ 6,000 Loans $ 116,000 Deposits $ 80,000 Capital $ 50,000 Total $ 130,000 Total $ 130,000 The required reserve...

Balance sheet of the Summer bank

Assets

Liabilities

Cash $ 8,000

Deposited with the Fed $ 6,000

Loans $ 116,000

Deposits $ 80,000

Capital $ 50,000

Total $ 130,000

The required reserve ratio (RRR) on all deposits is 8%

How much new amount of loan the entire banking system be able to create because of the excess reserves?

Jun 07, 2022

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