Balance sheet of the Spring bank Assets Liabilities Cash $ 4,000 Deposited with the Fed

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answerhappygod
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Balance sheet of the Spring bank Assets Liabilities Cash $ 4,000 Deposited with the Fed

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Balance sheet of the Spring bank
Assets
Liabilities
Cash
$ 4,000
Deposited with the Fed $ 3,000
Loans

$ 113,000
Deposits $ 100,000
Capital $ 20,000
Total
$ 120,000
Total $
120,000
The required reserve ratio (RRR) on all deposits is 6%
e. How much new amount of loan will this bank be able to create
with the RRR of 5%?
f. How much new amount of loan the entire banking system be able
to create because of the excess reserves?
g. What happens to money supply after reducing the RRR
from 6% to 5%?
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