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The following is the balance sheet for Bank of the American People. Assets Liabilities Shareholder's Equity Cash Treasuries Mortgage Loans Small Business Loans Direct Deposits

The following is the balance sheet for Bank of the American People. Assets Liabilities Shareholder's Equity Cash Treasuries Mortgage Loans Small Business Loans Direct Deposits Certificates of Deposit Loans from Banks Equity $5,000 $10,000 $40,000 $40,000 $4,500 $500 $5,000 If you go into the bank and deposit $10,000, how much does the money supply increase if the bank does not lend the money out? $0 By how much does the money supply increase if the bank lends some out but keeps 10% in reserves? $ 11000

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