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Suppose that Big Bucks Bank has the simplified balance sheet shown below. The reserve ratio is 20 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 20 percent. Instructions: Enter your answers as whole numbers. a. What is the maximum amount of new loans that Big Bucks Bank can make? Show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount. Liabilities and net worth Checkable deposits Reserves Securities Loans S 27,000 30000 35000 $ 100,000

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