Adding the another pic with questions that go with it.

ratio, the entire banking system can increase the volume of loans by Exercise 2 This exercise shows how the multiplier process works. Assume that all banks in the system lend all of their excess reserves, that the reserve ratio for all banks is 0.20, and that all loans are returned to the banking system in the form of transactions deposits. Use the information from the Balance Sheets in Table 13.2, Table 13.3, Table 13.4, and Table 13.5 to answer Questions 1-6. Table 13.2 Bank A - Initial Balance Sheet Assets Liabilities Required reserves $20,000 Transaction accounts $100,000 Excess reserves O Other assets 80,000 Total $100,000 Total $100,000