Question Three: (3.25 points) ABC Company deposits a check in the amount of $850,000 in its DD Deposit at Bank (X). Assume LRR = 16% a. Construct the balance sheet of Bank (X) and the Consolidated Balance sheet of the banking system. State the effect of this transaction on Bank (A) and the Banking System (1.5 points) b. Calculate the M-SS multiplier. (0.75 point) c. Calculate the effect on M-Ss of the economy and state the effect on M-SS. (1 point) Question Three: (3.25 points) ABC Company deposits a check in the amount of $850,000 in its DD Deposit at Bank (X). Assume LRR = 16% a. Construct the balance sheet of Bank (X) and the Consolidated Balance sheet of the banking system. State the effect of this transaction on Bank (A) and the Banking System (1.5 points) b. Calculate the M-SS multiplier. (0.75 point) c. Calculate the effect on M-Ss of the economy and state the effect on M-SS. (1 point)