I am needing help to solve this problem. I do NOT just want the answer! I would like to see the formulas and how you have come to the answer. Thank you.

I am needing help to solve this problem. I do NOT just want the answer! I would like to see the formulas and how you have come to the answer. Thank you.

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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