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3. Critical analysis 012 Suppose that the reserve requirement is 10% and the following tate shows the balance sheet of the People's National Bank Assets

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3. Critical analysis 012 Suppose that the reserve requirement is 10% and the following tate shows the balance sheet of the People's National Bank Assets Liabilities Vault Cash $30,000 Checking Deposits $300,000 Deposits at red $45.000 Net Worth $15,000 Securities $45,000 Loans $195,000 The required reserves of People's National Bank are $ while the excess reserves are S Thus, if this bank wanted to extend a loan, the maximum amount for this additional loan would be s Assuming the bank extends this loan, the total amount of loans in the bank's balance sheet would be Suppose the reserve requirement increases to 20%. The bank would only be in a position to extend additional loans amounting to

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