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C. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in her account, which happens to also be at the Maple Leafs Bank. The bank is now (Click to select) v by $ d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple Leafs Bank. Show the resulting balance sheet in columns (2) in the table above. e. The Bank now has excess reserves of $ 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%. (1 all) $. Assets (1 all) Liabilities/ Equity $9,000,000 Reserves $1,200,000 $ Demand deposits Shareholders’ equity 5,000,000 Loans 6,800,000 Securities 2,500, 000 Fixed assets 3,500,000 Total $14,000,000 Total $14,000,000 In the table above, show the balance sheet of this banking system when it is fully loaned up. Use columns (1 all). 1. The increase in the money supply as a result of all the banks becoming fully loaned up is $ . Returning to the original balance sheet. What would be the consequence of the economy's central bank imposing a 20% required eserve ratio on all banks? and $ worth of loans would have to be called in. The Banking system would be (Click to select) ♥ by $

C. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in her account, which happens to also be at the Maple Leafs Bank. The bank is now (Click to select) v by $ d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple Leafs Bank. Show the resulting balance sheet in columns (2) in the table above. e. The Bank now has excess reserves of $ 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%. (1 all) $. Assets (1 all) Liabilities/ Equity $9,000,000 Reserves $1,200,000 $ Demand deposits Shareholders’ equity 5,000,000 Loans 6,800,000 Securities 2,500, 000 Fixed assets 3,500,000 Total $14,000,000 Total $14,000,000 In the table above, show the balance sheet of this banking system when it is fully loaned up. Use columns (1 all). 1. The increase in the money supply as a result of all the banks becoming fully loaned up is $ . Returning to the original balance sheet. What would be the consequence of the economy's central bank imposing a 20% required eserve ratio on all banks? and $ worth of loans would have to be called in. The Banking system would be (Click to select) ♥ by $

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming that the bank's target reserve ratio is 10%. Assets (1) (2) Liabilities / Equity (1) (2) $120, еее $4 Demand deposits $ $900,000 Reserves Loans 680,000 Shareholders' equity 500,000 Securities 250,000 Fixed assets 350, 000 $1,400, өеө Total $1,400,000 Total a. This bank is (Click to select) v by $ b. Suppose that a loan, in the amount of the excess reserves found in part (a), is made to Sats Mundin. Show the resulting balance sheet in columns (1) in the table above. C. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in her account, which happens to also be at the Maple Leafs Bank. The bank is now (Click to select) v by $ d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple Leafs Bank. Show the resulting balance sheet in columns (2) in the table above. e. The Bank now has excess reserves of $ 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%. (1 all) Liabilities / Equity (1 all) Assets < Prev 36 of 40 Next > arch
Transcribed Image Text:The table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming that the bank's target reserve ratio is 10%. Assets (1) (2) Liabilities / Equity (1) (2) $120, еее $4 Demand deposits $ $900,000 Reserves Loans 680,000 Shareholders' equity 500,000 Securities 250,000 Fixed assets 350, 000 $1,400, өеө Total $1,400,000 Total a. This bank is (Click to select) v by $ b. Suppose that a loan, in the amount of the excess reserves found in part (a), is made to Sats Mundin. Show the resulting balance sheet in columns (1) in the table above. C. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in her account, which happens to also be at the Maple Leafs Bank. The bank is now (Click to select) v by $ d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple Leafs Bank. Show the resulting balance sheet in columns (2) in the table above. e. The Bank now has excess reserves of $ 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%. (1 all) Liabilities / Equity (1 all) Assets < Prev 36 of 40 Next > arch
C. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in her account, which happens to also be at the Maple Leafs Bank. The bank is now (Click to select) v by $ d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple Leafs Bank. Show the resulting balance sheet in columns (2) in the table above. e. The Bank now has excess reserves of $ 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%. (1 all) Liabilities / Equity (1 all) Assets $1,200,000$ Demand deposits $9,000,000 $. Reserves Shareholders' equity 5,000,000 Loans 6,800,000 Securities 2,500,000 Fixed assets 3,500,000 $14,000,000 Total Total $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 $ h. Returning to the original balance sheet. What would be the consequence of the economy's central bank imposing a 20% required reserve ratio on all banks? and $ worth of loans would have to be called in. The Banking system would be (Click to select) v by $
Transcribed Image Text:C. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in her account, which happens to also be at the Maple Leafs Bank. The bank is now (Click to select) v by $ d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple Leafs Bank. Show the resulting balance sheet in columns (2) in the table above. e. The Bank now has excess reserves of $ 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%. (1 all) Liabilities / Equity (1 all) Assets $1,200,000$ Demand deposits $9,000,000 $. Reserves Shareholders' equity 5,000,000 Loans 6,800,000 Securities 2,500,000 Fixed assets 3,500,000 $14,000,000 Total Total $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 $ h. Returning to the original balance sheet. What would be the consequence of the economy's central bank imposing a 20% required reserve ratio on all banks? and $ worth of loans would have to be called in. The Banking system would be (Click to select) v by $
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