Suppose a bank's balance sheet looks as follows: Assets $ Reserves 4,000 Liabilities 600 Deposits $ 3,400 4,000 Total li

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Suppose A Bank S Balance Sheet Looks As Follows Assets Reserves 4 000 Liabilities 600 Deposits 3 400 4 000 Total Li 1 (53.89 KiB) Viewed 38 times

Suppose a bank's balance sheet looks as follows: Assets $ Reserves 4,000 Liabilities 600 Deposits $ 3,400 4,000 Total liabilities $ Loans $ Total assets $ 4,000 Assume banks are required to hold reserves equal to 10 percent of deposits. Instructions: Enter your responses as a whole number. a. How much excess reserves does the bank hold? $ b. How much more can this bank lend? $