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Assume that Bank Z is the only commercial bank in the country with zero excess reserve and its legal cash requirement is 12%. Suppose that

Assume that Bank Z is the only commercial bank in the country with zero excess reserve and its legal cash requirement is 12%. Suppose that a customer, Mr. G, deposits RM 5000 in the bank of Bank Z.

Based on the information given:

a) Construct a balance sheet for Bank Z.

(4 Marks)

b) Calculate the total deposits.

(2 Marks)

c) Calculate the total reserves.

(2 Marks)

d) Calculate the total loans created.

(2 Marks)

PLEASED HELP ME TO GET THROUGH IT WITH DETAILED EXPLANATION.

BAFB 1023 Macroeconomics

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