1. Continuing the above problem (2), Drac uses the loan to buy supplies from Ula. Ula deposits the proceeds in her bank The Arm & Leg (A&L) Bank. Before the deposits, A&L Banks balance sheet was the same as HH Banks balance sheet as shown in Table 13.2.
   1. In Table 13.5, show A&L Banks balance sheet after Ula has deposited her funds.

Table 13.5 A&L Bank Balance Sheet
Assets ($)	Liabilities ($)
Reserves _______	Deposits _______
Loans _______
Total _______	Total _______

2. The required reserve ratio remains at 10%. What are the banks:

1. Actual reserves?

2. Required reserves?

3. Excess reserves?

4. What is the maximum amount that the bank can loan?

3. The A&L Bank loans the maximum possible to Frank, who wants to repair his laboratory. After Frank has withdrawn his loan from the A&L Bank, complete Table 13.6 to show A&L Banks final balance sheet.

Table 13.6 A&L Bank Final Balance Sheet
Assets ($)	Liabilities ($)
Reserves _______	Deposits _______
Loans _______
Total _______	Total _______