The reserve requirement in the United States is 10%. Lion Bank has deposits of $12 million and keeps its reserves as low as possible. Lion Bank has $3 million in government bonds and has loaned out the remainder of its asses (that which is not kept as reserves). Valere Bank has deposits of $7 million. It also keeps reserves as low as possible, and has loaned out $3.2 million. The rest of its assets (again, that which is not kept as reserves) is held in government bonds.

a. Fill in the Balance sheet table below for both banks

Assets Liabilities Leans Depesits Bends Reserves Lien Bank Assets Liabilities Bank: Liabilities