Calculate the amount of additional reserve the bank

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Reference no: EM13233458

it's desires reserve ratio is 3%
assets- reserves:80,000
loans:1920,000
liabilities- demand deposits: 2,000,000

a)Does this bank have excess reserves or just the right amount of reserves ? how do you know?

b)calculate the amount of additional reserve this bank would like to loan out to customers

c)if this bank loans out the reserves you calculated in part ( b above, how much will the money supply change as a result

Reference no: EM13233458

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