Money and Banking Worksheet 1) The balance sheet for ORourke's Bank is listed below (assume a 2S % reserve ratio: Assets: Reserves $ 4,000,000 Checkable Deposits $8,000,000 Marketable Securities ,00,000Savings Depouts 10,0000 10,000,000 Loans Receivable Net Fixed Assets Total Assets 15,000,000 Long Term Debt 2,000,000 5.000000 Equity $60,000,000 Total Liabilities/Equity $60,000,000 40,000,000 at is the maximum amount of new loans that O'Rourke's Bank can lend? (Show Calculations) Required Reserves Excess Reserves- How much has the M1 and M2 money supplies changed? 3) 4) How will the balance sheet appear after O'Rourke's Bank lends this amount? How will the balance sheet appear after the checks drawn for the entire amount of the new loans have cleared through O'Rourke's Bank? Calculate the new excess reserves. 5) a) What is the monetary multiplier in this problem? (Show Calculation) b) Recalculate the new monetary multiplier if the reserve ratio were decreased to 0%, c) what problem would be created if the reserve ratio was 0%? 6) b) a) banking system because of the initial loans created by O'Rourke's Bank? (Show Calculation) 7) W hat is the maximum amount of new loans created throughout the entire commercial