Transaction One: Open a Bank and Accept Deposits Name your Bank Draw a T-Account Representing Deposits of $2 million 7 Transaction Two: Grant a Loan The Reserve Requirement is 20% Customer A wants to borrow $1 million. Customer B wants to borrow $400,000. Customer wants to borrow $300,000. Can you fulfill all three loan requests? Draw a T Account Representing a bank that is fully "loaned up" (reduce the loan amount to Customer Cif necessary) Transaction Three: Follow the Money Creation Process Customer A deposits his loan with his home bank, Bank of Taylor Draw a T-Account Representing this transaction for Bank of Taylor assuming they already have $1.5 million in deposits and loans in the amount of $700,000 Transaction Four: Calculate the Money Creation Effect Whot is the money multiplier rate in this example? i bonks in this economy are always fully loaned up, calculate how much money was created in this economy from the original three loons made by your bank (the amount that represents the bank's total excess reserves), Transaction One: Open a Bank and Accept Deposits Name your Bank Draw a T-Account Representing Deposits of $2 million 7 Transaction Two: Grant a Loan The Reserve Requirement is 20% Customer A wants to borrow $1 million. Customer B wants to borrow $400,000. Customer wants to borrow $300,000. Can you fulfill all three loan requests? Draw a T Account Representing a bank that is fully "loaned up" (reduce the loan amount to Customer Cif necessary) Transaction Three: Follow the Money Creation Process Customer A deposits his loan with his home bank, Bank of Taylor Draw a T-Account Representing this transaction for Bank of Taylor assuming they already have $1.5 million in deposits and loans in the amount of $700,000 Transaction Four: Calculate the Money Creation Effect Whot is the money multiplier rate in this example? i bonks in this economy are always fully loaned up, calculate how much money was created in this economy from the original three loons made by your bank (the amount that represents the bank's total excess reserves)