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Consider the following balance sheet for Capital One.

AssetsLiabilities
Reserves930Deposits3000
Loans2070

Suppose that Capital One 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 US Bank.

AssetsLiabilities
Reserves240Deposits2400
Loans2160

Suppose that US Bank is a typical bank and keeps only the required reserves. In addition, suppose that someone deposited $100.

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

Hint

Consider the following balance sheet for TD Bank.

AssetsLiabilities
Reserves483Deposits2300
Loans1817

Suppose that someone deposited $500 at TD Bank.

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

Hint

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