Homework answers / question archive / Suppose a bank's balance sheet looks as follows:   Assets   Liabilities   Reserves $690 Deposits $6,000 Loans $5,310   Assume banks are required to hold reserves equal to 10 percent of deposits

Suppose a bank's balance sheet looks as follows:   Assets   Liabilities   Reserves $690 Deposits $6,000 Loans $5,310   Assume banks are required to hold reserves equal to 10 percent of deposits

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Suppose a bank's balance sheet looks as follows:

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?

$