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For the following, assume no currency is held outside the banking system and banks desire to hold no excess reserves. The required reserve ratio is

For the following, assume no currency is held outside the banking system and banks desire to hold no excess reserves. The required reserve ratio is 20 percent. 5 C A Fr T BI US X2 x A. The balance sheet below shows a bank before any intervention by the Fed. Provide values for the missing gray cells. Reserves 2,000 DD 10,000 Required Excess Loans 8,000 Debt 2,000 Securities 5,000 Capital 3,000 I Required reserves = Excess reserves = B. Use the balance sheet below to show the immediate (before the bank has time to make loans, etc.) effects of the Fed buying $500 worth of securities from this bank. To do so, provide values for the missing gray cells. The required reserve ratio is still 20 percent. Reserves Required Excess Loans DD Debt 2,000 Securities Capital 3,000 Total reserves = Required reserves = Excess reserves = Loans = Securities DD= C. Use the balance sheet below to show the effect on the balance sheet of the bank after the bank has time to make loans, etc. To do so, provide values for the missing gray cells. Reserves DD Required Excess Loans Securities Total reserves = Required reserves = Excess reserves = Loans = Securities = Debt 2,000 Capital 3,000 DD = D. What is the change in the money supply once banks have time to adjust their loan portfolio and level of demand depositsimage text in transcribedimage text in transcribed

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