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See attached. 2. Question #2 Score [- = + [3 assume the simplified consolidated balance sheet shown below is for the entire commercial banking system

See attached.

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2. Question #2 Score [- = + [3 assume the simplified consolidated balance sheet shown below is for the entire commercial banking system with no currency, and that all gures are shown in billions of dollars. Assu me further that the required reserve ratio is 25%. Reserves $52 Checka ble Deposits $200 {a} What is the amount of excess reserves in the system? {Iii-.5 points] [ {b} What is the simple money multiplier he re? {0.5 points] { {c} Given your answers to {a} and {b}, by how much can M1, which is the same as checkable deposits, increase throughout the system when all is said and done? [1 point] { {d} Assuming that banks at each step of money creation prooess lend out their excess reserves and do not use them to purchase additional securities [i.e., securities remain at 543], what would be the resulting values for each of the asset and liabilities items indicated in the consolidated balance sheet? Enter your answers in the Table below. {1 point] [

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