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Assume a required reserve ratio of 10 percent. A check for $80,000 is drawn on an account in Bank One and deposited in a demand

Assume a required reserve ratio of 10 percent. A check for $80,000 is drawn on an account in Bank One and deposited in a demand deposit in Bank Two.

How much have the excess reserves of Bank Two increased?

How much in the form of new loans is Bank Two now able to extend to borrowers?

By how much have reserves of Bank One decreased?

By how much have excess reserves of Bank One decreased?

The money supply has increased by how much?

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