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Balance sheet of Bank National Assets Liabilities Vault Cash Deposit in Fed Loans Total Assets $1,500 $ 500 $4,000 $6,000 Deposits Total Liabilities $6,000 $6,000
Balance sheet of Bank National Assets Liabilities Vault Cash Deposit in Fed Loans Total Assets $1,500 $ 500 $4,000 $6,000 Deposits Total Liabilities $6,000 $6,000 If the Fed changed the reserve requirement from 10% to 25% the money supply (MS) in the whole banking system could: a. Decrease by $18,000 b. Decrease by $54,000 c. Increase by $18,000 d. Decreases by $36,000 e. Increase by $36,000
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