Chick my Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system and that all figures are in billions of dollars. The reserve ratio is 25 percent. Assets 1 (a) (b) Reserves $ 54 Liabilities and net worth Checkable deposits 1' (a) (b) $ 200 Securities 46 Loans 100 Instructions: Enter your answers as a whole number. a. What is the amount of excess reserves in this commercial banking system? $ billion What is the maximum amount the banking system might lend? $ 16 billion Show in columns 1(a) and 1'(a) how the consolidated balance sheet would look after this amount has been lent. Enter these new values in the gray shaded cells of the given table. What is the size of the monetary multiplier? b. Using the original figures, answer the questions in part a assuming the reserve ratio is 20 percent. What is the amount of excess reserves in this commercial banking system? $ 14 billion What is the maximum amount the banking system might lend? $ 70 billion Show in columns 1(b) and 1'(b) how the consolidated balance sheet would look after this amount has been lent. Enter these new values in the gray shaded cells of the given table. What is the monetary multiplier? What is the resulting difference in the amount that the commercial banking system can lend when the required reserve ratio is 20 percent rather than 25 percent? It can lend $ billion (Click to select)