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1. Please see attachment .

   Explanation:

   Please see attachment .

   [tex]Suppose that second republic bank currently has $150,000 in demand deposits and $97,500 in outstandi[/tex]
   [tex]Suppose that second republic bank currently has $150,000 in demand deposits and $97,500 in outstandi[/tex]

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2. Reserves= $52,500

   Required reserves= $15,000

   Excess reserves= $37,500

   Explanation:

   The Second republic bank has $150,000 in demand deposits

   They also have $97,500 in outstanding loans

   The reserves can be calculated as follows

   Reserves= deposits-loans

   = $150,000-$97,500

   = $52,500

   The required reserves can be calculated as follows

   Required reserves= deposits × reserve ratio

   = $150,000×10/100

   = $150,000×0.1

   = $15,000

   The excess reserves can be calculated as follows

   Excess reserves= reserves-required reserves

   = $52,500-$15,000

   = $37,500

   Hence the reserves, required reserves and excess reserves are $52,500, $15,000 and $37,500 respectively

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