The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 89 Assets Reserves Loans Securities Fixed assets Total $117,000 $ 117000 1,080,000 150,000 153,000 1,500,000 150000 153000 Liabilities/Equity Demand Deposits Shareholders' equity 9000 Total $1,350,000 $ 150,000 1,500,000 150000 a. The amount of excess reserves is $ b. The maximum amount that loans and deposits could be increased by is $ c. Assume that the system becomes fully loaned up. Show the new balance sheet in the table above. d. Now that the system is fully loaned up, the money supply will have increased by $

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The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 8%.
Assets
Reserves
Loans
Securities
Fixed assets
Total
$117,000 $
1,080,000
150,000
153,000
1,500,000
117000
150000
153000
Liabilities/Equity
9000
Demand Deposits
Shareholders' equity
Total
$1,350,000 $
150,000
1,500,000
150000
a. The amount of excess reserves is $
b. The maximum amount that loans and deposits could be increased by is $
c. Assume that the system becomes fully loaned up. Show the new balance sheet in the table above.
d. Now that the system is fully loaned up, the money supply will have increased by $
Transcribed Image Text:The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 8%. Assets Reserves Loans Securities Fixed assets Total $117,000 $ 1,080,000 150,000 153,000 1,500,000 117000 150000 153000 Liabilities/Equity 9000 Demand Deposits Shareholders' equity Total $1,350,000 $ 150,000 1,500,000 150000 a. The amount of excess reserves is $ b. The maximum amount that loans and deposits could be increased by is $ c. Assume that the system becomes fully loaned up. Show the new balance sheet in the table above. d. Now that the system is fully loaned up, the money supply will have increased by $
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