If the required reserve ratio is 10 percent, how much in excess reserves does this bank hold? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 $0 O $3,000 $7,000 O $10,000 $66,000 If the required reserve ratio is 10 percent, how much money can this bank create? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 O $0 O $3,000 O $7,000 O $10,000 $46,000 The required reserve ratio is 10 percent. If the bank makes a loan of the maximum amount possible, how much will be in excess reserves immediately after the loan is made--before it is spent. Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 $0 O $2,700 $3,000 $5,700 O $10,000 The required reserve ratio is 10 percent. If this bank makes a loan of the maximum amount possible, what is the maximum amount of additional lending possible in the banking system? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 O $0 O $3,000 O $10,000 O $30,000 O $70,000 O $100,000 The required reserve ratio is 10 percent. If the Federal Reserve sells securities to this bank, what is the maximum amount of securities it could sell? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 $0 O $3,000 O $7,000 O $10,000 $16,000 The reserve requirement is 10 percent. Suppose Klaus finds $1000 cash stashed in his exoskeleton and deposits it at the bank whose T-account is shown below. By how much will the M1 money supply change immediately after Klaus's deposit? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $ 76,000 Total Liabilities and Net Worth $76,000 $0 decrease $1,000 increase $1,000 increase $100 increase $10,000 The reserve requirement is 10 percent. Suppose that Klaus receives $1000 from the sale of a bond to the Federal Reserve. Klaus deposits it at the bank whose T- account is shown below. By how much will the M1 money supply change immediately after Klaus's deposit? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 O $0 O decrease by $1,000 increase by $1,000 O increase by $100 O increase by $10,000 The reserve requirement is 10 percent. Suppose Silas anticipates that his pickup will need an expensive repair and withdraws $1000 from his checking account from the bank whose T-account appears below. By how much do the bank's reserves change after the withdrawal? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 $0 decrease $1,000 increase $1,000 O decrease $100 O decrease $10,000 The reserve requirement is 10 percent. The stockholders' equity remains unchanged, but liabilities and net worth increase by $20,000. What must happen to assets? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 O They must decrease by $20,000. O They must decrease by $2,000. O They remain unchanged. They must increase by $2,000. They must increase by $20,000, The reserve requirement is 10 percent. Suppose that the bank whose T-account is shown below is uncharacteristically cautious and holds back an extra 5% of its reserves. Suppose it lends the amount that fits its acceptable level of risk, by how much can real GDP change after all rounds of spending? Assets Liabilities + Net Worth $10,000 Checkable Deposits $46,000 Stockholders' Equity $16,000 $4,000 Reserves Loans Securities Property $70,000 $6,000 Total Assets $76,000 Total Liabilities and Net Worth $76,000 $0 $3,000 O $7,500 O $15,000 O the answer is indeterminant