5. The balance sheet at the top of the next page is for Big Bucks Bank. The reserve ratio is 20 percent. LO3 Assets Liabilities and net worth (1) (2) (1) (2) Reserves $22,000 Checkable deposits $100,000 Securities 38,000 Loans 40,000 What is the maximum amount of new loans that Big Bucks Bank can make? Show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount. b. By how much has the supply of money changed? How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against the bank? Show the new balance sheet in columns 2 and 2'. d. Answer questions a, b, and c on the assumption that the reserve ratio is 15 a. с. percent.

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