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ANSWER THE FOLLOWING QUESTIONS WITH part 7,8,9 The money Mr. Smith borrows is deposited in Bank C. Bank C lends its excess reserves to Mr.

ANSWER THE FOLLOWING QUESTIONS WITH part 7,8,9

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The money Mr. Smith borrows is deposited in Bank C. Bank C lends its excess reserves to Mr. Black. Show Bank C's balance sheet after the loan has been made out. BANK C Assets Liabilities Reserves Number Deposits Number Loans Number The money Mr. Black borrows is deposited in Bank D. Bank D lends its excess reserves to Mr. Green. Show Bank D's balance sheet after the loan has been made out. BANK D Assets Liabilities Reserves Number Deposits Number Loans Number If the above process continues to completion, the following totals will exist for the banking system: Part 7: Deposits Number Part 8: Reserves Number Part 9: Loans Number

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