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Suppose thot Big Bucks Bonk hos the simplified balance sheet shown below. The reserve rotio is 20 percent Instructions Enter your answers as whole numbers

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Suppose thot Big Bucks Bonk hos the simplified balance sheet shown below. The reserve rotio is 20 percent Instructions Enter your answers as whole numbers a. What is the maximum amount of new loons that Big Bucks Bank can make? Show in columns 1 and 1 how the bank's balance sheet will appear after the bank hos lent this additional amount. Abeeta Liabilities and net worth (12) (20) Reserves 5 22.000 Checkable deposits 100 000 Securities 38.000 Loans 40,000 b. By how much has the supply of money changed? 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! d. Using the original figures, revisit questions o, b, and e based on the assumption that the reserve ratio is 15 percent. What is the maximum amount of new loans that this bank can make? Show in columns 3 and 3' (below) how the bank's balance sheet will appear after the bank has ent this additional amount By how much has the supply of money changed? How will the bank's balance sheet appear after checks drown for the entre amount of the new loans have been cleared against the bank? Show this new balance sheet in columns 4 and 4 Abbot Llabilities and network (4) KA 5 22.000 Chuckabla 8 KO duposits Securities 38.000 Loans 40.000 Focarves

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