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Use the following balance sheet to answer the next three questions: assume ra = 0 . 1 5 Bank Balance Sheet ( s billions )

Use the following balance sheet to answer the next three questions: assume ra =0.15
Bank Balance Sheet (s billions)
\table[[,Bank Balance,Sheet ($ billions),750],[Cash,15,Demand Deposits,],[Deposits at the,,,],[Federal Reserve,100,,],[Loans,515,,137.5],[Securities,257.5,Capital,]]
The equity multiplier is?
A)6.45
B)9.95
C)8.6
D)13
The level of excess reserves is? A) $2.5 billion
B) $4 billion
C) $-4 billion
D) $-2.5 billion
If the bank loses $6 billion in deposits then the level of excess reserve's will be?
A) $-2.6 billion
B) $1.7 billion
C) $-7 billion
D) $-1.7 billion
An increase in the demand for American-made goods will A) decrease the demand for dollars on the foreign exchange market. B) increase the demand for dollars on the foreign exchange market. C) decrease the supply of dollars on the foreign exchange market. D) increase the supply of dollars on the foreign exchange market.
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