Simpson National Bank Balance Sheet 12 13 14 15 16 17 18 19 20 21 Liabilities: Assets: Deposits: Cash Reserves Vault Cash Deposit with Federal Reserve Loans: Mortgage Loans Business Loans Personal Loans TOTAL LOANS OUTSTANDING $ 55,000 $ 5,000 Currency $17,000 $ 84,000 $ 165,000 $29,000 Savings Accounts Deposits Money Market Deposits Demand/Checkable Deposits 30,000 95,000 $ 120,000 $ 278,000 300,000 300,000 TOTAL LIABILITIES: TOTAL ASSETS: 23 24 2. Suppose that the bank decides to keep TWICE as much in reserves than what is required by law (6 points) 25 26 27 28 a. What is the new reserve ratio? b. What is the new reserve total, including the additional demand deposit of $7,500? c. What is the new value of the money multiplier