Use the information in the simplified bank balance sheet below to answer the following questions.

Banking and the Expansion of the Money Supply Practice BANK A Assets Liabilities Actual reserves $1,000 Demand deposits $5,000 Loans $4,000 BANK B Assets Liabilities Actual reserves $ 100 Demand deposits $ 600 Loans $ 500 BANK C Assets Liabilities Actual reserves $ 10 Loans 90 Demand deposits $ 100 19. Based on the balance sheets above for three different banks, which of the following is true, if the reserve requirement is 10 percent? (A) Bank A has no excess reserves. (B) Bank B has no excess reserves. (C) Bank B can increase its loans by $500. (D) Bank B can increase its loans by $40. (E) Bank C has excess reserves. 19: Use the information in the simplified bank balance sheet below to answer the following questions. Assets Liabilities Req. Reserves $2,000 Demand Deposits $20,000 Excess Reserves $3,000 Owner's Equity $5,000 Treasury Bonds $5,000 Loans $15,000 1. What is the required reserve ratio? If Bob deposits $1000 into this bank, 2. . Will M1 money supply initially 1, I, stay the same? How much is the new required reserves? 4. How much is the new excess reserves? 5 . How much more can the bank initially lend out? 6. What is the maximum change to the money supply from this deposit?Use the information in the simplied bank balance sheet below to answer the following questions. {Same numbers as the above table, just different scenarios) Assets Liabilities Req. Reserves $2,000 Demand Deposits $20,000 Excess Reserves $3 .000 Owner's Equity $5.000 Treasury Bonds $5 .000 Loans $15,000 If Bob withdrawals $3000 from this bank: Will M1 money supply initially 1', 1,, stay the same? How much is the required reserves? How much is the excess reserves? Assume Bob burned the money, what is the maximum change in money supply? PPNT' Practice FRO: The following is a simplied balance sheet for Sunshine Bank in the United States. Sunshine Bank Assets Liabilities Required Reserves $10,000 Demand Deposits $100,000 Excess Reserves $5,000 Loans $85,000 Owners Equity $0 a. What is the reserve requirement? b. Assume that Luis withdraws $5,000 in cash from his checking account at Sunshine Bank. i. By how much will Sunshine Bank's reserves change based on Luis' withdrawal? ii. What is the initial effect of the withdrawal on the M1 measure of the money supply? Explain. iii. As a result of the withdrawal, what is the new value of excess reserves on the balance sheet of Sunshine Bank, based on the reserve requirement from part (a)