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A. Set out an initial balance sheet for Midwest Bank, assuming the bank has the following assets and liabilities: 40 bonds and government equities,
A. Set out an initial balance sheet for Midwest Bank, assuming the bank has the following assets and liabilities: 40 bonds and government equities, 40 cash reserves, 180 deposits, 120 loans, and 20 equity and net worth. 3B. Set out an initial balance sheet for Harris Bank, assuming the bank has the following assets and liabilities: 40 bonds and government equities, 40 cash reserves, 300 deposits, 240 loans, and 20 equity and net worth. 3C. Set out an initial balance sheet for SunTrust Bank, assuming the bank has the following assets and liabilities: 20 bonds and government equities, 100 cash reserves 220 deposits, 110 loans, and 10 equity and net worth. 3D. Construct a money market. Denote in the market the actual supply of money assuming that the three banks represent the entire financial industry. 3E. Set out the new balance sheet for SunTrust Bank, if it makes a loan to Drake Construction for 60. 3F. Set out the new balance sheet for Harris Bank, if Drake Construction deposits 20 of the loan after paying 40 to vendors. 3G. Set out the new balance sheet for Midwest Bank, if vendors of Drake Construction deposit 10 of the 40 after paying employees. 3H. Return to the money market in 3D and change the market as a result of the loan to Drake Construction, payment by Drake to vendors, and vendors' payments to employees. Denote in the market the new actual supply of money.
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