Bank West's Balance Sheet Assets Cash Deposits at Bank of Canada Loans and Mortgages $500 $700 $19 800 $21 000 Deposits Capital Liabilities $20 000 $1 000 $21 000 TABLE 26-3 Refer to Table 26-3. Assume that Bank West is operating at its target reserve ratio and has no excess reserves, and that all commercial banks have the same target reserve ratio. If a new deposit to the Canadian banking system of $1500 is deposited at Bank West and there is no cash drain, the total new deposits created in the banking system can be calculated as follows: 1) 1500/0.024 = $62 500. 2) 2000/0.025 = $80 000. 3) 1500/0.06 = $25 000. 4) 1500/0.025 = $60 000. 5) 2000/0.06 = $33 333