1. In a commercial bank's balance sheet, reserves (cash) and loans are recorded in which part of the balance sheet? 2. If a businessperson wishes to start a bank, why would they visit the offices of the Comptroller of the Currency? 3. Prior to the Great Depression of the 1930s, if your bank failed, you would lose any funds you had on accounts with that bank. To prevent bank panics and ensure trust with the public, what bank insurance program was created in 1933? 4. If Edna deposits $100 of cash which she found under her pillow into her checking account at First National Bank, then what happens to the M-1 money supply? (Did it increase, decrease or remain the same) 5. A bank faces a required reserve requirement of 10%. If the bank has $500 million of checkable accounts and $75 million of total reserves, then how large are the bank's excess reserves it has available to lend? 6. If the reserve requirement is 20% and there is $10,000 of excess reserves in the banking system then by how much maximum expansion can there be in M-1 money supply if the excess reserves are lent and relent in the banking system? 7. Briefly explain how bank transactions can create more money supply (M-1). 8. Provide any one reason why the use of money is important for society