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Suppose that Kesha deposits $8,000 into her savings account at First Bank. The reserve requirement facing First Bank is 17%. Instructions: Enter your answer as

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Suppose that Kesha deposits $8,000 into her savings account at First Bank. The reserve requirement facing First Bank is 17%. Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. a. Use this information to show how First Bank's assets and liabilities initially change when Kesha deposits the $8,000 in the bank. v.ruww much money can First Bank lend out to other people? $ c. Now suppose that First Bank holds no excess reserves and lends out all of the excess reserves resulting from Kesha's deposit. How do First Bank's assets and liabilities change? A Simple Bank Balance Sheet

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