b. The banking system has excess reserves of $29,000 Formula (write out formula #la): Required Reserves = Required Reserve Ratio x Checkable-deposit liabilities .01 x 100,000 = 1,000 Formula (write out formula #1b): Excess Reserves = Reserves - Required Reserves 30,000 - 1,000 = 29,000 C. Loans and the money supply can be expanded by a maximum of $29.000