11. Please answer the table only. The columns specifically. CH 7.8.9)ReservesLoansThe table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming that the bank's targetreserve ratio is 10%.AssetsSecuritiesFixed assetsTotal$120,000 $680,000250,000350,000$1,400,000(1)Reserves$$1,200,000(2)www$_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.coSaved< Preva. This bank is over-reservedby $30,000b. Suppose that a loan, in the amount of the excess reserves found in part (a), is made to Sats Mundin. Show the resulting balancesheet in columns (1) in the table above.O SearchTotalc. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in heraccount, which happens to also be at the Maple Leafs Bank.Liabilities / EquityDemand depositsShareholders' equityThe bank is now over-reserved by $ 30.000d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple LeafsBank. Show the resulting balance sheet in columns (2) in the table above.e. The Bank now has excess reserves of $30,000Suppose that there are a total of 9 other banks in the economy and that the balance sheet for the whole banking system is presentedin the table below. Assume that each of the other banks also has a target reserve ratio of 10%.Assets(1 all)Liabilities / EquityDemand depositsB11 of 14⠀SAMSUNG$900,000 $500,000Next >$1,400,000Ü$9,000,000$(1 all)(1)S(2)He

Required reserves refer to the amount of funds that banks are required to hold in reserve by their…

The table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming that the bank's target reserve ratio is 10%. Reserves Loans Assets $120,000 $ 680,000 (1) (2) A Liabilities/ Equity Demand deposits Shareholders' aquituDE $900,000 $ (2)

The table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming that the bank's target reserve ratio is 10%. Reserves Loans Assets $120,000 $ 680,000 (1) (2) A Liabilities/ Equity Demand deposits Shareholders' aquituDE $900,000 $ (2)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 4P

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