ASSETS LIABILITIES & NET WORTH Actual Reserves Required Reserves Excess Reserves 20,000 Demand Deposits 60,000 Loans 40,000 60,000 60,000 Given a Reserve Requirement of 20%, what is the Required Reserve for this bank? A. What is the Excess Reserve for this bank?S B. How much money can this bank lend? C. If this money goes through the Banking System, how much does the total money supply increase? $ D. IF the Reserve through money policy, is lowered to 10%, what is the new Required Reserve? $ the new Excess Reserve? E. NOW much can this bank lend? S If this money goes through the Banking system, how much does the total money supply increase after the change in the RR? $ F. G. So, through a change from 20% to 10%, the Banking System was able to increase the available supply of money by S