What is the available lending capacity


Suppose the following data apply: Total bank Reserves: $22 billion Total bank deposits: $400 billion Cash held by public: $40 Billion Bonds held by public: $220 Billion Stocks held by public: $140 Billion Gross domestic product: $5 trillion Interest rate: 6 percent Required reserve ratio: 0.05 A. How large is the money supply? B. How much excess reserves are there? c. What is the money multiplier? d. What is the available lending capacity?

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Microeconomics: What is the available lending capacity
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