Question: Can you please solve the question 2. The table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming

Can you please solve the question

Can you please solve the question 2. The table below is the

2. The table below is the current balance sheet for the Maple Leafs Bank. Answer the following questions assuming that the bank's target reserve ratio is 10%. Assets (1) (2) Liabilities / Equity (1) (2) $ $ $ $ Reserves $120,000 120,000 90,000 Demand deposits $900,000 930,000 900,000 Loans 680,000 710,000 710,000 Shareholders' equity 500,000 500,000 500,000 Securities 250,000 250,000 250,000 Fixed assets 350,000 350,000 350,000 Total $1,400,000 1,430,000 1,400,000 Total $1,400,000 1,430,000 1,400,000 a. This bank is over-reserved by $ 30,000 b. Suppose that a loan, in the amount of the excess reserves found in part (a), is made to Sats Mundin. Show the resulting balance sheet in columns (1) in the table above. c. Suppose that Sats immediately spends all of his loan by writing a cheque to his psychologist, Freda Freud. She deposits it in her account, which happens to also be at the Maple Leafs Bank. The bank is now I over-reserved by $ 27,000 d. Suppose, instead, that the bank makes a loan for the amount in your answer in part (a), which then clears against the Maple Leafs Bank. Show the resulting balance sheet in columns (2) in the table above. e. The Bank now has excess reserves of $| Suppose that there are a total of 9 other banks in the economy and that the balance sheet for the whole banking system is presented in the table below. Assume that each of the other banks also has a target reserve ratio of 10%

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