Part 2 to previous question.

44F Bill takes $10,000 out of his cookie jar and deposits it in a transactions account in Bank A. Fill in the blanks in Bank A's balance sheet in Table 13.3 after the deposit. (Remember that some of the deposit will show up in required reserves and the remainder will become part of excess reserves.) Table 13.3. Bank A - Balance Sheet After Bill's Deposit Assets Liabilities Required reserves Transaction accounts Excess reserves Other assets 80,000 insert Total Total Now assume that Bank A lends all of its excess reserves to Pat, who spends the money on a car. The car dealership deposits the money in its transactions account in Bank B. Bank B's initial balance sheet is the same as Bank A's initial balance sheet. Fill in the blanks in Bank B's balance sheet after the car dealership makes its deposit. Table 13.4. Bank B - Balance Sheet After Car Dealership's Deposit Assets Liabilities pause Required reserves Transaction accounts Excess reserves Other assets 80,000 Total Total ctrl Now assume Bank B lends all of its excess reserves to Mary, who spends the money on college tuition. The university deposits the money in Bank C. Bank C's initial balance sheet is the same as Bank A's initial balance sheet. 3. Fill in the blanks in Bank C's balance sheet after the university makes its deposit. Table 13.5. Bank C - Balance Sheet After University's Deposit Assets Liabilities Required reserves Transaction accounts Excess reserves Other assets 80,000 Total Total 4. Add together the loans made by each bank because of the initial $10,000 deposit made by Bill. Bank A lent $. Bank B lent $ Bank C lent $_ Total loans made so far $. Exercise is 5 . THE MONEY multiplier for this for The 6. THE perennial deposit creations banking system