Assets Reserves Securities Loans $240 2 Consolidated Balance Sheet: Commercial Banking System Liabilities & Net Worth $72 Checkable Deposits 110 Loans from Federal Reserve Banks 60 Consolidated Balance Sheet! Federal Reserve Banks $240 Reserves of Commercial banks 2 Treasury Deposits Federal Reserve Notes Securities Loans to Comercial Banks $72 30 140 Refer to the given balance sheets and assume the reserve ratio is 25 percent. Suppose the Federal Reserve Banks buy S2 in securities from the public, which deposits this amount into checking accounts. As a result of these transactions, the supply of money will Multiple Choice Multiple Choice be unaffected, but the money.creating potential of the commercial banking system will increase by $6. directly decrease by S2, and the money-creating potential of the commercial banking system will be unaffected directly increase by $8, and the money.creating potential of the commercial Banking system will increase by an additional 32 directly increase by $2. and the money-creating potential of the commercial banking system will increase by on additional $6