Question: Please teach me how to solve this pply precisely. Explain why this 12. You are given this account for a bank: ASSETS LIABILITIES Reserves Loans

Please teach me how to solve this pply precisely. Explain why

Please teach me how to solve this

pply precisely. Explain why this 12. You are given this account for a bank: ASSETS LIABILITIES Reserves Loans $ 500 3,000 $3,500 Deposits The required reserve ratio is 10 percent. a. How much is the bank required to hold as reserves given its deposits of $3,500? b. How much are its excess reserves? c. By how much can the bank increase its loans? d. Suppose a depositor comes to the bank and withdraws $200 in cash. Show the bank's new balance sheet, assum- ing the bank obtains the cash by drawing down its reserves. Does the bank now hold excess reserves? Is it meeting the required reserve ratio? If not, what can it do? 13. After sufferi . After suffering two years of staggering hyperinflation, the

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