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746 PART NINE Money, Banking, and Monetary Policy Assets Securities 38,000 deposits $100,000 Loans 40,000 to the Federal Reserve Bank in its district, receiving a

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746 PART NINE Money, Banking, and Monetary Policy Assets Securities 38,000 deposits $100,000 Loans 40,000 to the Federal Reserve Bank in its district, receiving a $5,000 increase in reserves in return. What level of ex- cess reserves does the bank now have? By what amount does your answer differ (yes, it does!) from the answer to problem 3? LO33.3 system and that all figures are in billions of dollars. The serve ratio is 25 percent. LO33.5 a. What is the amount of excess reserves in chis commer banking system? What is the maximum amount 5. The balance sheet at the top of the page is for Big Bucks banking system might lend? Show in columns 1 and I'ho the consolidated balance sheet would look after this am Bank. The reserve ratio is 20 percent. LO33.3 a. What is the maximum amount of new loans that Bigte has been lent. What is the size of the monetary Liabilities and net worth Bucks Bank can make? Show in columns 1 and 1' howets the bank's balance sheet will appear after the bank has lent this additional amount. Reserves $52 Securities 48 100 deposits $200 b. By how much has the supply of money changed? c. How will the bank's balance sheet appear after checks Loans drawn for the entire amount of the new loans have been b. Answer the questions in part a assuming the reserve is 20 percent. What is the resulting difference in al banking system can lend 7. If the required reserve ratio is 10 percent, what is the mo etary multiplier? If the monetary multiplier is 4, whatis cleared against the bank? Show the new balance sheet in columns 2 and 2" amount that the co d. Answer questions a, b, and c on the assumption that the reserve ratio is 15 percent. 6. Suppose the simplified consolidated balance sheet shown in the right column is for the entire commercial banking required reserve ratio? LO33.5

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