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C The following balance sheet is for Big Bucks Bank. The reserve ratio is 20 percent. Assets (1) (2) Liabilities and net worth (1') (2')
C The following balance sheet is for Big Bucks Bank. The reserve ratio is 20 percent. Assets (1) (2) Liabilities and net worth (1') (2') Reserves $ 22,000 $ 22,000 $ 20,000 Checkable deposits $ 100,000 $ 102,000 $ 100,000 Securities 38,000 Loans 40,000 42,000 42,000 Instructions: Enter your answers as a whole number. a. What is the maximum amount of new loans that Big Bucks Bank can make? tA Using the table above, show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount by inserting the values into the gray shaded cells. b. By how much has the money supply changed
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