Answer:
1.5%
Explanation:
Reserves is the total amount of a bank's deposit that is not given out as loans
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Excess reserves is the difference between reserves and required reserves
Total increase in reserve = $15,000,000 + $1,800,000= $16,800,000
New excess reserve = total increase in reserve x initial reserve requirement) / initial excess reserve
($16,800,000 x 12.5%) / $15,000,000 = 14%
Increase in reserve requirement = 14% - 12.5% = 1.5%
