Based on the amount the Fed purchased and the required reserve ratio, the amount the bank will be able to lend customers is $9,460,000
What amount can the bank lend out?
This can be found as:
= Amount purchased by Fed - (Amount purchased by Fed x Required reserve)
Solving gives:
= 11 million - ( 11 million x 14%)
= 11 million - 1,540,000
= $9,460,000
Find out more on excess reserves at https://brainly.com/question/14173699
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