The following balance sheet (column 1) for "All Member Banks Combined" serves as a starting point. Assume a closed economy and not a Global economy exists. 1 2 Assets Vault Cash $ 84,000 $ 84,000 Reserves at Fed Res 290,400 _________ Required 276,000 _________ Excess 14,400 _________ Federal Funds Sold 432,000 432,000 Loans 5,760,000 __________ Securities 1,680,000 __________ Other Assets 1,281,600 1,281,600___ Total Assets $9,528,000 $___________ Liabilities Demand Deposits $ 3,600,000 $___________ Time Deposits 4,195,200 4,195,200 FF Purchased 432,000 432,000 Loans, Discounts and Advances 14,400 14,400 Other Liabilities 417,600 417,600 Capital Account 868,800 868,800 Total Liabilities + NW $9,528,000 $_____________ In the problem, assume that reserve requirements that must be maintained in cash or at the Federal Reserve are 10% on demand deposits and 0% on time deposits. Please fill in the aggregate balance sheet for member banks for the fiscal policy problem. a. Fill in column 2 with this part. (Assume column 1 is the starting position.) Because of the nature of the economy and the large federal deficit, the U.S. Government finances a $44,000 deficit by selling $20,000 of new bonds to banks and $24,000 of new bonds to non-banks. How would your answer possibly change in a Global economy? Banks Assets Liabilities Res _________ ^DD $__________ ^Sec $________ $_______ securities $_________ securities $________ DD $_________Demand Deposits Bank RR = .10 ($___________)- 84,000 = _$______________