Thank you!

40 3. A simplified balance sheet for the banking system is shown below. All $ are Billions. The system Ris 20%. (10) Assets Liabilities and Equity Reserves Demand Deposits 200 Securities 50 Property 30 Loans 140 Assume the Governor of the Central Bank is concerned by inflation in the economy. The Governor decides to _(buy/sell) $35 billion in securities, which the chartered banks agree to (sell/buy). Show the transaction values (e.g. +35, -35) in the blank columns, as needed for the banking system What is the amount of Excess Reserves in the Banking System now? The chartered banks will _(make loans, call-in loans) as a result of this. 4 Calculate the value of M1 and M2 from the following information: (10) Currency in circulation: $39 billion Currency in bank vault reserves: $17 billion Demand deposits at chartered banks: $60 billion Savings deposits at chartered banks: $ 112 billion Business savings at chartered banks: $205 billion Deposits at credit unions and trust companies: $240 billion