Suppose a bank has a reserve of $1200 on its account in the central bank and issued loans equivalent to $6800. Assume that customers like you and me have deposited equal to $8000 in the bank. Finally, assume that the required reserve ratio is 10%. How much is the bank required to hold as reserves given its deposits of $8,000? - How much are its excess reserves? Note: Excess reserve = Actual reserves-required reserves. By how much can the bank increase its loans