Consider the following hypothetical bank's balance sheet (only this partial view is needed to answer questions 1 to 5). The reserve requirement is 25 percent.
Total Reserves : 57000 Checkable Deposits : 150000
- This bank must maintain required reserves of how much?
- How much is this bank's excess reserves?
- How much money can this bank loan out?
- The banking system can expand loans by how much?
- If the reserve requirement were 20% instead of 25%, the banking system can expand loans by how much?