The following is the balance sheet for Raymond Bank, one of many commercial banks in a country.Assets Liabilities and EquityReserves $5,000 Deman deposits $20,000Business loans $10,000 Student loans$8,000 Government securities $2,000 Equity (Net worth) $5,000 Total assets$25,000 Total liabilities and equity$25,000(a) Calculate Raymond Bank's required reserves. (b) Calculate the maximum amount of additional loans that Raymond Bank can make without selling its holdings of government securities. (c) Assuming that Raymond Bank and other banks now lend out all excess reserves, calculate the maximum possible change in the following.
