IL Here is a consolidated balance sheet for the entire banking system. TABLE 1 Balance Sheet for Entire Banking Bystom Labilities and net worth Reserves $ 9,000 Doposits $90,000 $ 50,000 Securities $ 40,000 Net Worth $10,000 Other Assets $1,000 assume the Fed purchases $400 in government securities from banks. (Using TABLE 1e values as a starting point, answer questions (a-f) below based on the following sumptions! the reserve ratio on deposits is 10%, bomowers withdraw eash (6) equal te 50% of deposits (CID), and the banking system is not fully leaned up, holding idle exeess reserves (E equal to 40% of deposits (EID).] Answer F below. A. By how much have Demand Deposits [D] increased? B. By how much have Reserves [R] increased? C. By how much has currency [C] increased? D. By how much has the monetary base [B] increased? E. By how much has the money supply (M1) Increased? What is the M1 money multiplier [AM1AB) in this case? $200 $400 $600 D. Bhow much has unemotolar bago mcman E. By how much has the money supply Mo Increased? What is the M1 money multiplier (AM1/AB) in this caso? 400 $800 1 How many of the initial increaso in rosorvas are held as backing for expanded Demand Deposits? How many of the initial increase in reserves are held as Idle excess reserves? How many of the initial increase in reserves are drained $ es a currency (C) leakage? C. Y the reserve ratio on demand deposits Is reduced, will the M1 multiplier rise or fall? If the ratio of cash to demand deposits increases, will the M1 multiplier rise or fall? Y the ratio of excess reserves to demand deposits increases, will the M1 multiplier rise or fall? IL Here is a consolidated balance sheet for the entire banking system. TABLE 1 Balance Sheet for Entire Banking Bystom Labilities and net worth Reserves $ 9,000 Doposits $90,000 $ 50,000 Securities $ 40,000 Net Worth $10,000 Other Assets $1,000 assume the Fed purchases $400 in government securities from banks. (Using TABLE 1e values as a starting point, answer questions (a-f) below based on the following sumptions! the reserve ratio on deposits is 10%, bomowers withdraw eash (6) equal te 50% of deposits (CID), and the banking system is not fully leaned up, holding idle exeess reserves (E equal to 40% of deposits (EID).] Answer F below. A. By how much have Demand Deposits [D] increased? B. By how much have Reserves [R] increased? C. By how much has currency [C] increased? D. By how much has the monetary base [B] increased? E. By how much has the money supply (M1) Increased? What is the M1 money multiplier [AM1AB) in this case? $200 $400 $600 D. Bhow much has unemotolar bago mcman E. By how much has the money supply Mo Increased? What is the M1 money multiplier (AM1/AB) in this caso? 400 $800 1 How many of the initial increaso in rosorvas are held as backing for expanded Demand Deposits? How many of the initial increase in reserves are held as Idle excess reserves? How many of the initial increase in reserves are drained $ es a currency (C) leakage? C. Y the reserve ratio on demand deposits Is reduced, will the M1 multiplier rise or fall? If the ratio of cash to demand deposits increases, will the M1 multiplier rise or fall? Y the ratio of excess reserves to demand deposits increases, will the M1 multiplier rise or fall