suppose the total amount of reserves in the economy is$5 Billion, and the public does not directly hold any cash. Also, suppose all banks hold excess reserves equal to 4% of deposits and the required reserve ratio is 5%. Bank of america has $300 million in deposits and $10 million in net worth., draw a balance sheet for BOA. I knew the answer

Asset: reserves 27 M (300X0.09), Loans 203M, other asset 80M,

Liability: deposits 300M

Net worth:10M

I just do not understand how the loans is computed. Why I should put Loan 203M.