Assets Liabilities Total Reserves 50 000 Demand Deposits 180 000 U S Government

Assets liabilities total reserves $50,000 demand deposits $180,000 u.s. government bonds $110,000 loans $20,000 assume the balance sheet above is for eastlandia national bank. the reserve requirement is 10%. given the current situation, how much money can eastlandia national bank lend to borrowers if it wants to keep all of its bonds? based on your answer in part (a), calculate how much additional money can eastlandia national bank create? (calculate means show your work.) explain two reasons why money creation may not increase by the amount you identified in part (b).

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