Suppose a bank has $1,000,000 in deposits,a minimum reserve requirement of 15 percent,and bank reserves of $170,000.Then the bank can make new loans in the amount of:

Name: Suppose a bank has $1,000,000 in deposits,a minimum reserve requirement of 15 percent,and bank reserves of $170,000.Then the bank can make new loans in the amount of:
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The bank needs to keep 15% of $1,000,000, which is $150,000, as reserves. Since it has $170,000 in reserves, it can loan out the excess $20,000.

Suppose a Bank Has $1,000,000 in Deposits,a Minimum Reserve Requirement