Consider the following hypothetical banks balance sheet


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

  1. This bank must maintain required reserves of how much?
  2. How much is this bank's excess reserves?
  3. How much money can this bank loan out?
  4. The banking system can expand loans by how much?
  5. If the reserve requirement were 20% instead of 25%, the banking system can expand loans by how much?

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Business Management: Consider the following hypothetical banks balance sheet
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