Suppose a bank has the following balance sheet: If the desired reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?

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Suppose a bank has the following balance sheet:  If the desired reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?

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The Answer of Suppose a bank has the following balance sheet:  If the desired reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?

Suppose a Bank Has the Following Balance Sheet: If