Question 16 GME Bank has hired you to manage the bank's loans. Currently they have $425,000 in checking deposits and a reserve ratio of 15%. Use the bank balance sheet to answer the questions below. 110,000 Checkable deposits 425,000 315,000 Stock Investment 220,000 1. What is the value of the money multiplier if all banks lend out the maximum amount allowed? 2. Is this bank holding excess reserves, and if yes, how much? 3. Explain why the money supply increases when banks make loans