Bank of NAIT Balance Sheet ($000s) r=10%

Bank of NAIT Balance Sheet ($000s) r=10% Assets Liabilities Reserves 40,000 Demand Deposits 150,000 Securities 25,000 Loans 185,000 The Bank of NAIT's actual reserves are 040,000 025,000 015,000 04,000 If the Bank of NAIT's reserve ratio (r) is 10% then Desired reserves are 040,000 025,000 015,000 04,000 Excess reserves are 040,000 025,000 015,000 04,000What is the maximum amount of new money that The Bank of NAIT can create? 040,000 025,000 015,000 04,000 What is the money multiplier? 04 05 010 020 What is the maximum amount of new money that the Banking system can create as a result of The Bank of NAIT's maximum loan amount? 0400,000 0250,000 0150,000 040,000 If the Bank of NAIT increased its desired reserve ratio, the amount of new money that the Bank of NAIT can create will Odecrease Onot change Oincrease Odepends on the Ralph Klein Effect