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%. Assets (1 all) Liabilities / Equity 50 Reserves Loans Securities Fixed assets Total 3 $ 4 $1,200,000 6,800,000 DIO 2,500,000 3,500,000 $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 $[ % F6 5 € $ 6 Demand deposits Shareholders' equity Total F8 & 7 < Prev O Search A F9 11 of 14 # UN * 8 F10 9 Next > $9,000,000 5,000,000 $14,000,000 0 F12 Scr Lk $ PrtSc SysRq (1 all) Pause Break Gose

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%. Assets (1 all) Liabilities / Equity 50 Reserves Loans Securities Fixed assets Total 3 $ 4 $1,200,000 6,800,000 DIO 2,500,000 3,500,000 $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 $[ % F6 5 € $ 6 Demand deposits Shareholders' equity Total F8 & 7 < Prev O Search A F9 11 of 14 # UN * 8 F10 9 Next > $9,000,000 5,000,000 $14,000,000 0 F12 Scr Lk $ PrtSc SysRq (1 all) Pause Break Gose

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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