Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get upvote for quality What is the maximum amount of new loans that this bank can make?Show in columns 3 and 3' how the bank's balance sheet will appear after the bank has lent this additional amount. Add the new valuesinto the gray shaded cells of the given table.By how much has the money supply changed?$How will the bank's balance sheet appear after checks drawn for the entire amount of the new loans have been cleared against thebank? Show the new balance sheet in columns 4 and 4' in the table above. Add the new values into the gray shaded cells of the giventable. Suppose that Big Bucks Bank has the simplified balance sheet shown below. The reserve ratio is 20 percent.AssetsReservesSecuritiesLoans$ 27,00038,00035,000(1)AssetsReservesSecuritiesLoansInstructions: Enter your answers as a whole number.a. What is the maximum amount of new loans that Big Bucks Bank can make?(2)$ 27,00038,00035,000Liabilities and net worthCheckable deposits(3)Using the table above, show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additionalamount by inserting the new values into the gray shaded cells of the given table.b. By how much has the money supply 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 thebank? Show the new balance sheet in columns 2 and 2' by inserting the new values into the gray shaded cells of the given table.d. Using the original figures, revisit questions a, b, and c based on the assumption that the reserve ratio is now 15 percent.(4)$100,000Liabilities and net worthCheckable deposits(1¹)$100,000(2¹)(3¹)(4')

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a. What is the maximum amount of new loans that Big Bucks Bank can make? Using the table above, show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount by inserting the new values into the gray shaded cells of the given table. b. By how much has the money supply 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' by inserting the new values into the gray shaded cells of the given table.

a. What is the maximum amount of new loans that Big Bucks Bank can make? Using the table above, show in columns 1 and 1' how the bank's balance sheet will appear after the bank has lent this additional amount by inserting the new values into the gray shaded cells of the given table. b. By how much has the money supply 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' by inserting the new values into the gray shaded cells of the given table.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter14: Banking And The Money Supply

Section: Chapter Questions

Problem 2.3P

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