Economic

The table is the combined balance sheet

The table below is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio of 4%. Assets (1) (2) Liabilities / Equity (1) (2) Reserves $300 $ $ Demand deposits $3, 600 $ $ Loans 1,900 Shareholders' equity 400 Securities 1, 400 Fixed assets 400 Total $4,000 Total $4, 090 a. Fill in the blanks in columns (1) reflecting the complete effect of all excess reserves being loaned out. b. The maximum possible increase in the money supply is $ c. Returning to the original balance sheet, if the target reserve ratio changes to 10%, the quantity of loans the system be forced to call in will be $ Write in the figures in columns (2) that show this process completed