Redo the example of Gorgonzola in the text (refer to Tables 9.2 to 9.6 ), assuming that (1 ) initially, the Gorgonzolan central bank puts 5,000,000 guilders into circulation (instead of the 1,000,000 guilders used in the example) and (2 ) commercial banks desire to hold reserves of 20 percent of deposits (instead of the 10 percent used in the original example). As in the text, assume that the public holds no currency.

Show the consolidated balance sheets of Gorgonzolan commercial banks for each of the following instances. (LO3)

a. After the initial deposits (compare to Table 9.2).

b. After one round of loans (compare to Table 9.3).

c. After the first redeposit of guilders (compare to Table 9.4).

d. After two rounds of loans and redeposits (compare to Table 9.5).

e. What are the final values of bank reserves, loans, deposits, and the money supply

(compare to Table 9.6)?