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___________________!!!!!!!!!!!!!!!!!! Suppose the simplied consolidated balance sheet shown below is for the entire chartered banking system. All gures are in billions of doliars. The desired

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Suppose the simplied consolidated balance sheet shown below is for the entire chartered banking system. All gures are in billions of doliars. The desired reserve ratio is 25 percent Instructions: All answers to this question should be entered as whole numbers. Cash reserves Securities 4B Loans 100 a. What is the amount of excess reserves in this chartered banking system? 5 billion What is the maximum amount the banking system might lend? 5 billion Show in columns (a) and (a') how the consolidated balance sheet would loolc after this amount has been lent. What is the size of the monetary multiplier? b. Answer the questions in part (a) assuming that the desired reserve ratio is 20 percent. What is the amount of excess reserves in this chartered banking system? 5 billion What is the maximum amount the banking system might lend? 5 billion Show in columns (b) and (b') how the consolidated balance sheet would look after this amount has been lent. What is the monetary multiplier? What is the resulting difference in the amount that the chartered banking system can lend when the requu'ed reserve ratio is 20% rather than 25%? The banking system can lend 5 billionl (Clickto select) i. Suppose Yukon Bank has the following simplified balance sheet and that the desired reserve ratio is 20 percent. Instructions: All answers to this question should be entered as whole numbers. Assets Liabilities and net worth (1) (2) (1') (2") Cash reserves $22,000 Deposits $100,000 $ Securities 38,000 Loans 40,000 a. What is the maximum amount of new loans Yukon Bank can make? $ Show in columns 1 and 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? $ C. How will the bank's balance sheet appear after cheques 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'. d. Answer parts (a), (b), and (c) on the assumption that the desired reserve ratio is 15 percent. What is the maximum amount of new loans Yukon Bank can make? $ Show in columns 3 and 3' (below) 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? $ Assets Liabilities and net worth (3) (4) (3') (4') Cash reserves $22,000 Deposits $100,000 $ Securities 38,000 Loans 40,000 How will the bank's balance sheet appear after cheques 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' in the table above.Assume that the following asset values (in millions of dollars) exist in Ironmania: Category Value Bank of Canada notes in circulation $700 Corporate bonds 300 Iron ore deposits 50 Currency in chartered banks 100 Personal savings deposits and nonpersonal notice deposits at chartered banks 540 Demand deposits 1,500 Coins in circulation 40 a. What is M1+ in Ironmania? million b. What is M2 in Ironmania? million

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