Suppose Moey deposits $100,000 in Bank 1 and Ming borrows $80,000 from Bank 1 to buy a Dodge Viper. The required reserve ratio for all banks (set by the Fed) is 20%. Dodge deposits the money from Ming's Viper purchase in Bank 2, wich has a capital of $20000. Assume that there are no currency drains. (a) Fill in the following balance sheets, for Bank 1 and Bank 2, respectively: Bank 1 's Balance Sheet Assets Liabilities Reserves: Loans: Demand Deposits: Bank 2's Balance Sheet Assets Reserves: Loans: Liabilities Demand Deposits: Capital : Total: b) What is the level of required reserves Bank 1 must hold after Moey's deposit? (c) What is the level of required reserves Bank 2 must hold after Dodge's deposit?

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