Assume the public in Sylvania holds $4 billion in cash. All commercial banks are required to hold 20% of their checking deposits as reserves. All banks in Sylvania are identical, and have the following identical balance sheets:

ASSETS	LIABILITES & BANK CAPITAL
Reserves $ 50M	Checking Deposits ?
Loans $ 300M	Net Worth $ 150M

Assume that this balance sheet is complete, i.e., lists all assets and capital of these banks, and that the only liability of the banks is checking deposits.

1.Find the dollar amount of checking deposits each of these banks has on its balance sheet.

2.What percentage of checking deposits is each of these banks holding as excess reserves?

3.If the total money stock (supply) is $10B, find the total amount of reserves held by banks in the economy.