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Question 2 Assume that Bank Z is the only commercial bank in the country with zero excess reserve and its legal cash requirement is 12%.

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Question 2 Assume that Bank Z is the only commercial bank in the country with zero excess reserve and its legal cash requirement is 12%. Suppose that a customer, Mr. G, deposits RM 5000 in the bank of Bank Z. Based on the information given: a) Construct a balance sheet for Bank Z. (4 Marks) b) Calculate the total deposits. (2 Marks) c) Calculate the total reserves. (2 Marks) d) Calculate the total loans created. (2 Marks) (Total: 10 Marks)

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