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II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 the person holds. In this case, the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires reserve-deposit ratio are 0.25. Show the bank's balance sheet, the Balance Sheet on Monday M2 $800 D R RL R Assets R L monetary base, and the money supply for Tuesday and Wednesday. Balance Sheet on Tuesday M2 Assets D Assets Liabilities $ Balance Sheet on Wednesday $ $ D $800 Liabilities Liabilities $ $1000 SA M2 MB $1000 MB MB

II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 the person holds. In this case, the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires reserve-deposit ratio are 0.25. Show the bank's balance sheet, the Balance Sheet on Monday M2 $800 D R RL R Assets R L monetary base, and the money supply for Tuesday and Wednesday. Balance Sheet on Tuesday M2 Assets D Assets Liabilities $ Balance Sheet on Wednesday $ $ D $800 Liabilities Liabilities $ $1000 SA M2 MB $1000 MB MB

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 the person holds. In this case, the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires reserve-deposit ratio are 0.25. Show the bank's balance sheet, the Balance Sheet on Monday M2 MB Assets $800 D R R L R monetary base, and the money supply for Tuesday and Wednesday. Balance Sheet on Tuesday M2 L Assets Assets D $ Liabilities Balance Sheet on Wednesday $ D $800 Liabilities Liabilities $ $1000 $ M2 $1000 MB MB
Transcribed Image Text:II Analytical 3. Suppose on Monday a person deposits $800 in a Friendly Bank out of $1000 the person holds. In this case, the following would be the balance sheet of The Friendly Bank. Now suppose the bank desires reserve-deposit ratio are 0.25. Show the bank's balance sheet, the Balance Sheet on Monday M2 MB Assets $800 D R R L R monetary base, and the money supply for Tuesday and Wednesday. Balance Sheet on Tuesday M2 L Assets Assets D $ Liabilities Balance Sheet on Wednesday $ D $800 Liabilities Liabilities $ $1000 $ M2 $1000 MB MB
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