uz Saved Help Refer to the table below and assume that the Fed's reserve ratio is 10 percent and the economy is in a severe recession. Also suppose that the commercial banks are hoarding all excess reserves (not lending them out) because of their fear of loan defaults. Finally, suppose that the Fed is highly concerned that the banks will suddenly lend out these excess reserves and possibly contribute to Inflation once the economy begins to recover and confidence is restored. (1) Reserve Ratio, % (1) 10 (2) 20 (3) 25 (4) 30 (2) (3) (5) (6) (7) Checkable Actual Required Excess Reserves, Money-Creating Money-Creating Deposits Reserves Reserves Potential of Single Potential of Bank, (5) Banking System $ 26,000 $ 11,000 $ 2,600 $ 8,400 $ 8,400 $ 84,000 $ 26,000 $ 11,000 $ 5,200 $ 5,800 $ 5,800 $ 29,000 $ 26,000 $ 11,000 $ 6,500 $ 4,500 $ 4,500 $ 18,000 S 26,000 $ 11,000 $ 7,800 $ 3.200 $ 3,200 $ 10,667