Answer:
Assuming the bank loans out all of its remaining excess reserves as a checkable deposit and has a check cleared against it for that amount, its reserves and checkable deposits will now be: $5000
Explanation:
Checkable deposit = 110,000
Required reserve = 20% of 110,000
= 22,000
Reserves = $27,000
Excess reserve = 27,000 - 22,000
= $5000
So, this bank can safely expand its loans by a maximum of $5000 ( i.e, excess reserve)