A bank has a withdrawal of $1,000.If the bank has no excess reserves and if there is a 15 percent reserve requirement,

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When a bank has a withdrawal of $1,000 and no excess reserves with a 15% reserve requirement, it effectively loses $1,000 in reserves. To maintain the required reserves, it must reduce its loans by the amount that can be supported by the $1,000. Since it keeps 15% of deposits as reserves, it can only support loans of $1,000 / 0.15 = $6,666.67. Without the $1,000, it can now only support $5,666.67 in loans, a reduction of $1,000 in deposits leading to a reduction of $850 in loans, because it needs to hold 15% of the $1,000 ($150) in reserve.

A Bank Has a Withdrawal of $1,000