Assets:

Reserves: 200

Demand Deposits: 2,000

Liabilities:

Loans: 1,800

Owners' Equity: 0

Reserve Requirement: 10%

A. What is the new loan amount from this bank?

A customer now deposits 100 cash into the bank.

B. What is the maximum amount of new loans the bank can give?

C. What is the total change in the banking system's loans?

D. What is the total change in the national Demand Deposits?

E. What is the total change in the national Money Supply?

Assets:

Required Reserves: 10,000

Excess Reserves: 5,000

Loans: 85,000

Liabilities:

Demand Deposits: 100,000

Owners' Equity: 0

A. What is the required reserve %?

A customer withdraws 5,000 from their personal account.

B. What is the change in the Required Reserve amount?

C. What is the initial change in the national M-1?

D. What is the new amount for the bank's Excess Reserve?