Hi, can you help me with this question please.

The table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming that the banks target reserve ratio is 10%.

Assets		(1)	(2)	Liabilities / Equity		(1)	(2)
Reserves	$120,000	$	$	Demand deposits	$900,000	$	$
Loans	680,000			Shareholders equity	500,000
Securities	250,000
Fixed assets	350,000
Total	$1,400,000			Total	$1,400,000

a. This bank is (Click to select) over-reserved under-reserved by $ . b. Suppose that a loan, in the amount of the excess reserves found in part (a), is made to Sats Mundin. Show the resulting balance sheet in columns (1) in the table above. c. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in her account, which happens to also be at the Maple Leafs Bank. The bank is now (Click to select) over-reserved under-reserved by $ . d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple Leafs Bank. Show the resulting balance sheet in columns (2) in the table above. e. The Bank now has excess reserves of $ . Suppose that there are a total of 9 other banks in the economy and that the balance sheet for the whole banking system is presented in the table below. Assume that each of the other banks also has a target reserve ratio of 10%.

Assets		(1 all)	Liabilities / Equity		(1 all)
Reserves	$1,200,000	$	Demand deposits	$9,000,000	$
Loans	6,800,000		Shareholders equity	5,000,000
Securities	2,500,000
Fixed assets	3,500,000
Total	$14,000,000		Total	$14,000,000

f. In the table above, show the balance sheet of this banking system when it is fully loaned up. Use columns (1 all). g. The increase in the money supply as a result of all the banks becoming fully loaned up is $ . h. Returning to the original balance sheet. What would be the consequence of the economys central bank imposing a 20% required reserve ratio on all banks? The Banking system would be (Click to select) over-reserved under-reserved by $ , and $ worth of loans would have to be called in.

Thank You,