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Suppose the balance sheet of Panther Bank is currently as follows: assets Bank liabilities vault cash 100 demand deposits 9.000 required reserves 900 loans 8.000

  1. Suppose the balance sheet of Panther Bank is currently as follows:

assets Bank liabilities

vault cash 100 demand deposits 9.000

required reserves 900

loans 8.000

  1. calculate excess reserves held by panther bank if required reserves 10%
  2. how much can bank lend?
  3. complete following T-accounts showing the changes in assets when bank lends the amount you answered to part b,

assets bank liabilities

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