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Show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount Assets Liabilities and net
Show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount Assets Liabilities and net worth (2) (2) Reserves $ 27,000 Checkable deposits 100,000 Securities 38000 35000 Loans b. By how much has the supply of money changed? 4 c. How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against the bank? Show the new balance sheet in columns 2 and 2. 2.5 points d. Using the original figures, revisit questions a, b, and C based on the assumption that the reserve ratio is now 5 percent. What is the maximum amount of new loans that this bank can make? Print References Show in columns 3 and 3' (below) how the bank's balance sheet will appear after the bank has lent this additional amount By how much has the supply of money changed? 2.5 points Assets Liabilities and net worth Print (3) (3) 14) References Reserves $ 27.000 $ 100.000 deposits Securities Loans 3520 35000 How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against the bank? Show the new balance sheet in columns 4 and 4' in the table above
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