Question

Do anyone know about finance?

Answer 1

Not much judging by my bank account

Answer 2

Post your question - I have a degree in accounting/finance.

Answer 3

At the start required reserved (RR)=legal reserves (LR)=$100($1,000 X0.1)
With a deposit of $500, assuing that the bank places entire amount into LR, both demand deposits and LR increase by $500. Thus RR=$150($1,500 X0.1) and LR=$600. Excess reserves (ER) now equal $450($600-$150), which is the amount the bank can lend