Suppose that there are a total of 9 other banks in the economy and that the balance sheet for the whole banking system is presented in the table below. Assume that each of the other banks also has a target reserve ratio of 10%. Assets (1 all) Liabilities / Equity 50 Reserves Loans Securities Fixed assets Total 3 $ 4 $1,200,000 6,800,000 DIO 2,500,000 3,500,000 $14,000,000 f. In the table above, show the balance sheet of this banking system when it is fully loaned up. Use columns (1 all). g. The increase in the money supply as a result of all the banks becoming fully loaned up is $[ % F6 5 € $ 6 Demand deposits Shareholders' equity Total F8 & 7 < Prev O Search A F9 11 of 14 # UN * 8 F10 9 Next > $9,000,000 5,000,000 $14,000,000 0 F12 Scr Lk $ PrtSc SysRq (1 all) Pause Break Gose

Suppose that there are a total of 9 other banks in the economy and that the balance sheet for the whole banking system is presented in the table below. Assume that each of the other banks also has a target reserve ratio of 10%. Assets (1 all) Liabilities / Equity 50 Reserves Loans Securities Fixed assets Total 3 $ 4 $1,200,000 6,800,000 DIO 2,500,000 3,500,000 $14,000,000 f. In the table above, show the balance sheet of this banking system when it is fully loaned up. Use columns (1 all). g. The increase in the money supply as a result of all the banks becoming fully loaned up is $[ % F6 5 € $ 6 Demand deposits Shareholders' equity Total F8 & 7 < Prev O Search A F9 11 of 14 # UN * 8 F10 9 Next > $9,000,000 5,000,000 $14,000,000 0 F12 Scr Lk $ PrtSc SysRq (1 all) Pause Break Gose

Principles of Macroeconomics (MindTap Course List)

7th Edition

ISBN:9781285165912

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: The Monetary System

Section: Chapter Questions

Problem 5PA

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