Assets Liabilities Reserves                    K 1,500Loans                       K 3,500 Initial Deposit           K 5,000 Assume required reserve ratio is 10 percent and that 100% of all the loans are deposited as new deposits.                                 iv.           By how much can the bank increase its loans?At the end of the credit creation process, what will be the final value of the deposits

Assets Liabilities Reserves                    K 1,500Loans                       K 3,500 Initial Deposit           K 5,000 Assume required reserve ratio is 10 percent and that 100% of all the loans are deposited as new deposits.                                 iv.           By how much can the bank increase its loans?At the end of the credit creation process, what will be the final value of the deposits

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