Suppose that Big Bucks Bank has the simplified balance sheet shown below and that the reserve ratio is $10$ percent:

Instructions: All answers to this question should be entered as whole numbers.

a$.$ What is the maximum amount of new loans that Big Bucks Bank can make? $

Show in columns $1$ and $1\text{'}$ how the bank's balance sheet will appear after the bank has lent this additional amount.

b$.$ By how much has the supply of money changed? $

c$.$ How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against this

bank? Show this new balance sheet in column $2$ and $2\text{'}.$

d$.$ Answer questions $a,b,$ and $c$ on the assumption that the reserve ratio is $5$ percent.

What is the maximum amount of new loans that this bank can make? $

Show in column $3$ and $3\text{'}($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? $

How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against this

bank? Show this new balance sheet in column $4$ and $4\text{'}$ in the table above.