The Money Multiplier Process Loan Loan Loan Initial University Bank etc. Bank Bank deposit Deposit #3 Deposi #2 Deposit #4 Bank ($100) Excess reserves: $25 Excess reserves: $6.25 Excess reserves: $1.56 Excess reserves: $0.39 Required reserves: $75 Required reserves: $18.75 Required reserves: $4.69 Required reserves: $1.17 Instructions: Round your responses to two decimal places. a. What volume of loans can the banking system in the figure support? $ b. If the reserve requirement were 45 percent rather than 75 percent, what would the system's lending capacity be? $ Grav APR 23 tv O MacBook Pro C G Search or type URL @ % K 5 6 O W E R T U O P S D F G H J K L C V B N M