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Suppose a bank's balance sheet looks as follows: Assets Liabilities Reserves 2,000 Deposits $ 10,000 Loans 8,000 Total assets 10,000 Total liabilities $ 10,000 Assume

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Suppose a bank's balance sheet looks as follows: Assets Liabilities Reserves 2,000 Deposits $ 10,000 Loans 8,000 Total assets 10,000 Total liabilities $ 10,000 Assume banks are required to hold reserves equal to 10 percent of deposits. Instructions: Enter your responses as a whole number. a. How much excess reserves does the bank hold? $1 b. How much more can this bank lend? $

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