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The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 8%. Assets

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The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 8%. Assets Reserves Loans Securities Fixed assets Liabilities/Equity Demand Deposits Shareholders' equity $58,500 540,000 75,000 76,500 $675,000 75,000 Total 750,000 Total 750,000 a. The amount of excess reserves is $ . b. The maximum amount that loans and deposits could be increased by is $ c. Assume that the system becomes fully loaned up. Show the new balance sheet in the table above. d. Now that the system is fully loaned up, the money supply will have increased by $0

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