Suppose the Continental Bank has the following simplified balance sheet. The reserve ratio is 20 percent Liabilities and net worth Assets Reserves $22,000- Securities Loans Demand deposits $100,000 38,000 40,000 a. What is the maximum amount of new loans which this bank can make? Show in column 1 how the bank's balance sheet will appear after the bank has loaned this additional amount. b. By how much has the supply of money changed? Explain. 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 c. Liabilities and net worth Assets Reserves Securities Loans Demand deposits $100,000 38,000 40,000_ Now assume the reserve ratio (R) is 15%. What is the maximum amount of new loans which this bank can make? Show in column 1 how the bank's balance sheet will appear after the bank has loaned this additional amount By how much has the supply of money changed? d. - e. Explain. f. 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