Assume that the following table portrays the balance sheet of First Western bank. Assets Liabilities and Net Worth Vault Cash $150,000 Deposits $1,000,000 Deposits at Fed $200,000 Loans $650,000 Total $1,000,000 Total $1,000,000 First Western's bank reserves are equal to $ checking deposits, First Western' would maintain reserves over and above the desired amount. If First Western bank wanted to maintain 0.10 of its assets as reserves against as reserves. Therefore, it would have s If First Western uses the reserves above the desired level to extend additional loans, the money supply would increase by as additional If First Western wanted to maintain 0.20 of its assets as reserves against checking deposits, First Western' would maintain reserves, additional reserves would be s and the increase in the money supply would be s The increase in the money supply will be if First Western chooses a desired reserve ratio of 0.20. as