II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 that he holds. In this case the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires Balance Sheet on Monday M2 MB Assets Liabilities $1000 $1000 D $800 R reserve-deposit ratio are 0.25. Show the bank's balance sheet, the monetary base, and the money supply for Tuesday and Wednesday. MB Balance Sheet on Tuesday Assets R L RL Assets D Balance Sheet on Wednesday 65 $800 D Liabilities Liabilities M2 M2 MB
II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 that he holds. In this case the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires Balance Sheet on Monday M2 MB Assets Liabilities $1000 $1000 D $800 R reserve-deposit ratio are 0.25. Show the bank's balance sheet, the monetary base, and the money supply for Tuesday and Wednesday. MB Balance Sheet on Tuesday Assets R L RL Assets D Balance Sheet on Wednesday 65 $800 D Liabilities Liabilities M2 M2 MB
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 3.4P
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![II Analytical
3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 that he holds. In this
case the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires
Balance Sheet on Monday
M2
MB
Assets
Liabilities
$800
$1000
R
R
L
RL
D
reserve-deposit ratio are 0.25. Show the bank's balance sheet, the monetary base, and the money
supply for Tuesday and Wednesday.
Balance Sheet on Tuesday
MB
Assets
Assets
D
Balance Sheet on Wednesday
$800
D
Liabilities
$1000
Liabilities
M2
M2
MB](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53c8a81f-874c-4d59-9446-0d95f9a2a58d%2F6f8c3591-ed26-4266-8e16-2b622dceff2f%2Fmvxd5er_processed.jpeg&w=3840&q=75)
Transcribed Image Text:II Analytical
3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 that he holds. In this
case the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires
Balance Sheet on Monday
M2
MB
Assets
Liabilities
$800
$1000
R
R
L
RL
D
reserve-deposit ratio are 0.25. Show the bank's balance sheet, the monetary base, and the money
supply for Tuesday and Wednesday.
Balance Sheet on Tuesday
MB
Assets
Assets
D
Balance Sheet on Wednesday
$800
D
Liabilities
$1000
Liabilities
M2
M2
MB
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