The following balance sheet for "All Banks Combined", Column 1 serves as a starting point.Fill in the blanks, assuming a closed economy-not a Global economy exists. 12

Assets

Vault Cash$9,000$9,000

Reserves at Fed Res30,000__

Required28,500

Excess1,500

Federal Funds Sold45,00045,000

Loans600,000600,000

Securities175,000177,000

Other Assets178,000178,000

Total Assets$1,037,000

Liabilities

Demand Deposits$375,000

Time Deposits437,000437,000

FF Purchased105,000105,000

Loans, Discounts and Advances1,5001,500

Other Liabilities43,50043,500

Capital Account75,00075,000

Total Liabilities$1,037,000

Assume that reserve requirements are 10% on demand deposits and 0% on time deposits.Please fill in the combined balance sheet for 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 $5,000 deficit by selling $2,000 of new bonds to banks and $3,000 of new bonds to non-banks. How would your answer possibly change in a Global economy?

_ securities_ securities

_ DD

Private Sector

Banks

_3,000_ Demand Deposits

Bank RR = .10 (_)- 9,000 = ____