The table below is the balance sheet for all the banks combined in the banking system. Assets Liabilities/Equity $ 75,000 $ 750,000 Demand deposits Shareholders' equity Reserves Loans 675,000 75,000 Securities 45,000 Fixed assets 30,000 Total $825,000 Total $825,000 a. Which one of the above figures is part of the money supply? (Click to select) worth $ are included in money supply. b. If all banks maintain 100% reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the system? Money supply would (Click to select) v c. If none of the banks maintain reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the system?
The table below is the balance sheet for all the banks combined in the banking system. Assets Liabilities/Equity $ 75,000 $ 750,000 Demand deposits Shareholders' equity Reserves Loans 675,000 75,000 Securities 45,000 Fixed assets 30,000 Total $825,000 Total $825,000 a. Which one of the above figures is part of the money supply? (Click to select) worth $ are included in money supply. b. If all banks maintain 100% reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the system? Money supply would (Click to select) v c. If none of the banks maintain reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the system?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![The table below is the balance sheet for all the banks combined in the banking system.
Assets
Liabilities/Equity
$ 75,000
$ 750,000
Demand deposits
Shareholders’ equity
Reserves
Loans
675,000
75,000
Securities
45,000
Fixed assets
30,000
Total
$825,000
Total
$825,000
a. Which one of the above figures is part of the money supply?
(Click to select).
v worth $
are included in money supply.
b. If all banks maintain 100% reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the
system?
Money supply would (Click to select) v
C. If none of the banks maintain reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the
system?
Money supply would (Click to select)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd829cb31-0ca8-4ff6-b02f-a2ae981c3ef7%2F7c316fd3-50ae-4472-9c27-f45f041644c4%2F6lgrgo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The table below is the balance sheet for all the banks combined in the banking system.
Assets
Liabilities/Equity
$ 75,000
$ 750,000
Demand deposits
Shareholders’ equity
Reserves
Loans
675,000
75,000
Securities
45,000
Fixed assets
30,000
Total
$825,000
Total
$825,000
a. Which one of the above figures is part of the money supply?
(Click to select).
v worth $
are included in money supply.
b. If all banks maintain 100% reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the
system?
Money supply would (Click to select) v
C. If none of the banks maintain reserves, what happens to the money supply if $400 cash is deposited into one of the banks in the
system?
Money supply would (Click to select)
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