The table below is the balance sheet for all the banks combined in the banking system. Assets Reserves Loans Securities Fixed assets Total a. Which one of the (Click to select) are included in money supply. b. If all banks maintain 100% reserves, what happens to the money supply if $460 cash is deposited into one of the banks in the system? $ 110,000 990,000 66,000 44,000 $1,210,000 Liabilities/Equity Demand deposits Shareholders' equity Total above figures is part of the money supply? worth $ V $1,100,000 110,000 $1,210,000 Money supply would (Click to select) ✓ c. If none of the banks maintain reserves, what happens to the money supply if $460 cash is deposited into one of the banks in the system? Money supply would (Click to select)

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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9
7.8.9) (1
The table below is the balance sheet for all the banks combined in the banking system.
Reserves
Loans
Securities
Fixed assets
Total
Assets
$ 110,000
990,000
66,000
44,000
$1,210,000
Liabilities/Equity
Demand deposits
Shareholders' equity
Total
Saved
$ 1,100,000
110,000
$1,210,000
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 $460 cash is deposited into one of the banks in the
system?
Money supply would (Click to select) ✓
c. If none of the banks maintain reserves, what happens to the money supply if $460 cash is deposited into one of the banks in the
system?
Money supply would (Click to select)
Transcribed Image Text:7.8.9) (1 The table below is the balance sheet for all the banks combined in the banking system. Reserves Loans Securities Fixed assets Total Assets $ 110,000 990,000 66,000 44,000 $1,210,000 Liabilities/Equity Demand deposits Shareholders' equity Total Saved $ 1,100,000 110,000 $1,210,000 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 $460 cash is deposited into one of the banks in the system? Money supply would (Click to select) ✓ c. If none of the banks maintain reserves, what happens to the money supply if $460 cash is deposited into one of the banks in the system? Money supply would (Click to select)
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