If the banking system has demand deposits of $100,000,total reserves equal to $15,000,and a required reserve ratio of 10 percent,the banking system can increase the volume of loans by a maximum of

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The maximum amount of loans the banking system can make is calculated by taking the total reserves and dividing it by the required reserve ratio: $15,000/0.10 = $150,000. This represents the total amount of deposits the bank can hold before it's required to hold $15,000 in reserves. Since the bank currently has demand deposits of $100,000, it can lend out up to the difference, which is $50,000 (i.e. $150,000 - $100,000). Therefore, the maximum volume of loans the banking system can make is $50,000.

If the Banking System Has Demand Deposits of $100,000,total Reserves