Money and Banking Worksheet The balance sheet for XYZ Bank is listed below (assume a 50% reserve Assets: Reserves Marketable Securities 6,000,000 Savings Deposits Loans Receivable Net Fixed Assets Total Assets What is the maximum amount of new loans that XYZ Bank can lend? (Show Calculations) Required Reserves Excess Reserves 8) ratio): 10,000,000 Checkable Deposits $6,000,000 8,000,000 2,000,000 24,000,000 $40,000,000 5,000,000 Long Term Debt 19000.000 Equity 40,000,000 Total Liabilities/Equity 9) 10) How much has the M1 and M2 money supplies changed? 11) How will the balance sheet appear after XYZ Bank lends this amount? 12) How will the balance sheet appear after the checks drawn for the entire amount of the new loans have cleared through XYZ Bank? Calculate the new excess reserves. 13) a) What is the monetary multiplier in this problem? (Show Calculation) b) Recalculate the new monetary multiplier if the reserve ratio were increased to 100%, c) what problem would be created if the reserve ratio was 100%? b) a) 14) What is the maximum amount of new loans created throughout the entire commercial banking system because of the initial loans created by xXVZ Bank? (Show Calculation) 15) What are the two (2) conflicting goals of retail banks