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Consider the following balance sheet for US Bank.

AssetsLiabilities
Reserves598Deposits1300
Loans702

Suppose that US Bank 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 Bank of America.

AssetsLiabilities
Reserves552Deposits2300
Loans1748

Suppose that Bank of America is a typical bank and keeps only the required reserves. In addition, suppose that someone deposited $700.

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

Hint

Consider the following balance sheet for TD Bank.

AssetsLiabilities
Reserves546Deposits1300
Loans754

Suppose that someone deposited $100 at TD Bank.

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

Hint

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