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Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system and that all

Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system and that all

Suppose the simplified consolidated balance sheet shown below is for the entire commercial banking system and that all figures are in billions of dollars. The reserve ratio is 3 percent Instructions: Refer to the balance sheet below. Enter your answers whole numbers. a.

What is the amount of excess reserves in this commercial banking system? billion What is the maximum amount the banking system might lend? Ebilion Show columns 1(a) and 1(a) how the consolidated balance sheet would look after this amount has been lent. What is the size of the monetary multiplier? b. Using the original figures, answer the questions in part a assuming the reserve ratio is 20 percent. What is the amount reserves in this commercial banking system? excess billion

What is the maximum amount the banking system might lend? billion Show in columns 1b) and 1b) how the consolidated balance sheet would look after this amount has been lent. What is the monetary multiplier? What is the resulting difference percent rather than 25 percent? the amount that the commercial banking system can lend when the required reserve ratio is 20 billion Liabilities and net worth Assets (ы (a 1 (b 11 a Checkable Reserves 52 S 200 deposits Securities 48 100 Loans

abhinav behal 02-Mar-2020

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