Consider the following simplified balance sheet of a commercial bank: ASSETS LIABILITIES Vault cash $200 $3500 Deposits Deposits at the Federal Reserve $300 Loans $3000 The required reserve ratio is 10 percent. Find Actual Reserves $ , Required Reserves $ , and Excess Reserves $ . By how much can this bank increase its loans? $ What is the money (deposit) multiplier equal to? By how much can the entire banking system expand their loans? $ How much new wealth is directly created from this expansion of deposits? $