Question $1$: Banking$\_$Question

Please use the balance sheet for Bank $A$ to

answer the questions. Assume Bank A loans all

of its excess reserves, and the assets and

liabilities balance on the balance sheet. Show all

work.

Bank $A$

Assets

Liabilities

How much is $x?$

How much is the required reserve ratio?

How much is the Mm $($the money multiplier$)$

Assume Bank A loans its excess reserves to

Bank B$.$ Next Bank B loans their excess

reserves to Bank C$.$ Please create balance

sheets for Banks B and Bank C$.$

How much total money stock created in this

banking system?

What is the total of M$1$ for Bank A$?$ M$2?$