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Consider the following balance sheet for Wells Fargo.

AssetsLiabilities
Reserves1014Deposits2600
Loans1586

Suppose that Wells Fargo is a typical bank and keeps only the required reserves. Given this data, what is the money multiplier?

Hint

Consider the following balance sheet for Wells Fargo.

AssetsLiabilities
Reserves598Deposits2300
Loans1702

Suppose that Wells Fargo is a typical bank and keeps only the required reserves. In addition, suppose that someone deposited $200.

Given this data, what is the total change in the M1 Money Supply?

Hint

Consider the following balance sheet for Capital One.

AssetsLiabilities
Reserves682Deposits2200
Loans1518

Suppose that someone deposited $600 at Capital One.

Given this data, what is the maximum amount by which the money supply will increase?

Hint

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