Suppose customers deposit $10,000 of cash into their bank accounts. Assume that is all the money they have.

11) If your local bank is required to keep 8% of deposits, what does their balance sheet look like if they loan out all that they are allowed to? Each category has a letter. Use that to fill in each blank below.

Assets	Liabilities
Required Reserves (a)	Deposits (b)
Excess Reserves (c)
Loans (d)

(8pts)

a.

b.

c.

d.

12. When the customers deposited their cash into the bank, what happened to the Feds balance sheet? Explain what changed and what didnt. What happened to the monetary base?

13. If the bank received a withdrawal request for $500. Does the bank have enough in reserves to meet that request? Would they still have their required reserve ratio met? If not, what could they do?

14. Suppose the bank decided to borrow the necessary funds. Show what that would look like.

Assets	Liabilities
Required Reserves (a)	Deposits (b)
Excess Reserves (c)	Borrowed Funds (d)
Loans (e)

(8pts)

a.

b.

c.

d.

e.

15. Now, suppose that customers held on to $1,000 and only deposited $9,000. The bank then kept 8% as required reserves and an extra 2% as excess reserves. What is the money multiplier?

Please provide answer on all questions.