Macroeconomics 2nd Edition by Campbell McConnell ,Stanley Brue,Sean Flynn

تمرين 8

The balance sheet below is for Big Bucks Bank. The reserve ratio is 20 percent.
a. What is the maximum amount of new loans that Big Bucks Bank can make? Show in columns 1 and 1' how the bank's balance sheet will appear after die bank has lent this additional amount.
b. By how much has die supply of money changed?
c. How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against the bank? Show the new balance sheet in columns 2 and 2'.
d. Answer questions a , b , and c on die assumption that the reserve ratio is 15 percent.