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Q2 By using the correctly formatted balance sheets prepared in Q1, for each of the 5 years, calculate the value of the money multiplier, m

Q2 By using the correctly formatted balance sheets prepared in Q1, for each of the 5 years, calculate the value of the money multiplier, m (use c=0.3). Assuming that NAB's multiplier is representative of the aggregate Australian banking sector, comment on the significance of this multiplier for the Australian economy. What happens in the banking sector (once it reaches equilibrium) if RBA decides to inject $100 M in reserves? Show via a T-Account entry.

https://www.marketwatch.com/investing/stock/nab/financials/balance-sheet?countrycode=au

Q1) NAB bank balance

Assets:

Reserves Securities Loans
2022 56.46B 146.1B 822.3B
2021 50.83B 122.63B 728.7B
2020 64.39B 144.34B 634.84B
2019 55.46B 149.27B 619.88B
2018 50.19B 134.83B 598.55B

Liabilities:

Borrowings Capital Demand Deposits (CD) Savings and time deposits (S & T) Other Liabilities
2022 290.64B 59.03B 410.64B 206.07B 86.66B
2021 276.41B 62.78B 391.76B 156.01B 36.14B
2020 257.02B 61.29B 333.48B 170.31B 40.62B
2019 273.68B 55.6B 264.23B 201.25B 48.85B
2018 264.94B 52.71B 245.81B 207.13B 33.73B


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