Assets Cash US Govt. Bonds Loans Total Assets Bank 1 Balance Sheet Liabilities & Equity 30 M Deposits 250 M 20 M Capital 45 M 245 M Total Liabilities & 295 M 295 M Equity If Bank 1 is required to hold 8% as reserves, then its excess reserves would be 20,000,000. True False Assets Cash US Govt. Bonds Loans Total Assets Bank 1 Balance Sheet Liabilities & Equity 30 M Deposits 250 M 20 M Capital 45 M 245 M Total Liabilities & 295 M 295 M Equity If the Federal Reserve purchases 10 million worth of bonds from Bank 1, then the money supply will increase by $125,000,000 if Bank 1 lends out all of its excess reserves. O True O False