Table 6 Liabilities and Equity Assets $39,072 Checkable deposit $107,731 Equity $40,655 $30,655 $168,113 $50,000 Reserves Securities Loans Property 7. Refer to the data above. Suppose there is a deposit outflow of $24,072. What is the deficiency in reserves or surplus of reserves after the outflow. Use a required reserve ratio of 10% A. $22,261 B. $596 C. -$22857 D. -$2857 8. If a portion of the loans extended by commercial banks is taken as cash rather than as checkable deposits, the maximum money creating potential of the commercial banking system will: A. be equal to twice the reciprocal of the reserve ratio B. be unaffected. C. increase. D. decrease. 9. Suppose the reserve requirement is 10%. After a deposit of $168,113 of new currency into a checking account in the banking system, excess reserves will increase by: A. $151,302 B. $168,113 C. $16,811 D. $36,811 10. A fractional reserve banking system: A. is susceptible to bank panics. B. prevents money creation through the lending process. C. only tends to exist in developing economies. D. prevents the Federal Reserve from influencing the money supply