Question: I can not figure out how to solve this problem. Answer the next question on the basis of the following consolidated balance sheet of the
I can not figure out how to solve this problem.

Answer the next question on the basis of the following consolidated balance sheet of the commercial banking system. Assume that the reserve requirement is 20 percent. All figures are in billions and each question should be answered independently of changes specified in any preceding ones. Assets Liabilities and Net Worth Reserves $200 Checkable Deposits $1,000 Securities $300 Net Worth $400 Loans $500 Property $400 Refer to the above data. If the Fed increased the reserve requirement from 20 percent to 25 percent, a deficiency of reserves in the commercial banking system of would occur and the monetary multiplier would fall to $10 billion; 4 $50 billion; 4 $50 billion; 5 $10 billion; 8
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