Bank of Your Class

Assets	Liabilities
Cash $4,000 Deposited with the fed $4,000 Loans $192,000	Total Deposits $120,000 Capital $80,000
Total $200,000	Total $200,000

Calculate the following if the RRR is 6%

1Actual Reserve (AR)of the Bank of Your Class

2Required Reserve (RR) of the Bank of Your Class

3Excess Reserve (ER) of the Bank of Your Class

4How much new loans (NL) the Bank of Your Class can create because of this Excess Reserve (ER)?

5How much new loans (NL) the entire banking system can crate because of this Excess Reserve?

Calculate the following if the RRR is changed to 5%

1Actual Resave (AR) of the Bank of Your Class

2Required Reserve RR) of the Bank of Your Class

3How much new loans (NL) the Bank of Your Class can create?

4What happened to money supply after the Fed reduced the RRR from 6% to 5%?