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Suppose that Big Bucks Bank has the simplified balance sheet shown below. The reserve ratio is 10 percent. Instructions: Enter your answers as whole numbers.

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Suppose that Big Bucks Bank has the simplified balance sheet shown below. The reserve ratio is 10 percent. Instructions: Enter your answers as whole numbers. a. What is the maximum amount of new loans that Big Bucks Bank can make? Help Save & Exit Submit Show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount. Check my work Assets Liabilities and net worth (1) (2) (1) (2) Reserves s 27,000 Checkable deposits $ 100,000 Securities Loans 38000 350001 b. By how much has the supply of money changed? 4 Check my work 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 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 tilfe bank has lent this additional amount By how much has the supply of money changed? Help Save & E Check Assets Liabilities and net worth (4) Reserves (3) $ 27,000 Checkable deposits $ 100,000 Securities 38000 Loans 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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