Write a short essay in response to the scenario outlined below and be sure to explain your answers.

Congratulations! You just won $10 million in the lottery. Instead of squandering your new-found wealth on luxury goods and a life of ease, you have decided to stay in town and be a financial friend to your neighbors, who are hardworking but never seem to have enough money to fix up their homes or buy decent cars. The best way, you decide, is to start a bank that will make home and car loans at attractive rates. On the day that you open your doors, the reserve requirement set by the Federal Reserve System is 10%.