Question: The table below is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio or 4%

The table below is the combined balance sheet for all the banks in a banking system. Each bank has a target reserve ratio or 4% a. Fill in the blanks in columns (1) reflecting the complete effect of all excess reserves being loaned out: b. The maximum possible increase in the money supply is $ c. Returning to the original balance sheet, if the target reserve ratio changes to 10%, the quantity of loans the system be forced to cal in will be $ Write in the figures in columns (2) that show this process completed

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