The answers are given but I don't understand how to calculate each value given. Could you please explain the steps I need to take to answer each question.
Question 22 - Question 24: Alpha has a very simple banking system, in which there is only one chartered bank (The Frist Bank). The central bank of Alpha imposes a minimum required reserve ratio of 6%. Households in Alpha hold a fixed amount of $2,500 in the form cash for their daily transactions and will deposit any excess amount into their bank accounts. The initial balance sheet of the First Bank is as follows: Assets Liabilitics &Equitv $7,900 $520 $8,000 $420 Demand deposits Bank reserves Note: Unless otherwise stated, the excess reserves held by the First Bank will remain fixed at the current evl as shown in the initial balance sheet and will lend out any ulof reseves hevond thi Question 22 Suppose the central hank of Alpha pursues open market sales of $30. Complete the halance sheet of the Hirst Bank when the banking system is back to equilibrium. Assets Liabilities&Equitv Loans $7,430 Demand deposits S7,500 Bank reserves $490 Equity $420 Question 23 (Continued from Question 22) When the banking system is back to equilibrium, determine whether each of the following statements is true or false. -TRUE The level of money supply will decreases by S500 FALSE The level of loans made by the First Bank falls by $500. Question 24 Return to the initial situation. Worrying about the potential impacts of record level of household debt, the Frist Bank increases its excess reserves by $I8. Complete the halance sheet of the First Bank when the banking system is back to equilibrium Assets Liabilitics & Equitv $7,600 Demand deposits S7,700 oans Bank reserves $520 Equity $420 Question 22 - Question 24: Alpha has a very simple banking system, in which there is only one chartered bank (The Frist Bank). The central bank of Alpha imposes a minimum required reserve ratio of 6%. Households in Alpha hold a fixed amount of $2,500 in the form cash for their daily transactions and will deposit any excess amount into their bank accounts. The initial balance sheet of the First Bank is as follows: Assets Liabilitics &Equitv $7,900 $520 $8,000 $420 Demand deposits Bank reserves Note: Unless otherwise stated, the excess reserves held by the First Bank will remain fixed at the current evl as shown in the initial balance sheet and will lend out any ulof reseves hevond thi Question 22 Suppose the central hank of Alpha pursues open market sales of $30. Complete the halance sheet of the Hirst Bank when the banking system is back to equilibrium. Assets Liabilities&Equitv Loans $7,430 Demand deposits S7,500 Bank reserves $490 Equity $420 Question 23 (Continued from Question 22) When the banking system is back to equilibrium, determine whether each of the following statements is true or false. -TRUE The level of money supply will decreases by S500 FALSE The level of loans made by the First Bank falls by $500. Question 24 Return to the initial situation. Worrying about the potential impacts of record level of household debt, the Frist Bank increases its excess reserves by $I8. Complete the halance sheet of the First Bank when the banking system is back to equilibrium Assets Liabilitics & Equitv $7,600 Demand deposits S7,700 oans Bank reserves $520 Equity $420
