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A bank has $20,000 in reserves, $90,000 in bank loans, and $150,000 of deposits. If the reserve requirement is 10 percent, what is the bank’s reserve position?

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A bank has $20,000 in reserves, $90,000 in bank loans, and $150,000 of deposits. If the reserve requirement is 10 percent, what is the bank’s reserve position? What is the maximum dollar amount of loans the bank can make? What would happen to the nation’s money supply if the Fed lowered the reserve requirement for banks to 6 percent? Demonstrate your results with a numerical example. 

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