Unit 7'" [A0204] Round Deposits Required Excess FBS'BI'VES FBSEWBS $500.00 $100.00 $400.00 $400.00 Loan proceeds held as currency $2 00. 00 Loan proceeds deposited $200. 00 $200.00 T 8 10 Totals b) Estimate how much the money supply will increase in response to a new cash deposit of $500 by completing lhe accompanying table and calculate the new total money supply. How does your answer compare to an economy in which the total amount of the loan is deposited in the banking system and the public does not hold any of the loans in currency? (Hint: Complete the table below when none of the loan proceeds are held in currency following the example for row 1.} Excess reserves Required reserves Loans Loan proceeds held as currency Loan proceeds deposited 1 $500 00 $100.00 $400.00 $400. 00 0-00 5 "f 10 Totals Page 2 of 4