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Consider the following balance sheet for Bank of America.

AssetsLiabilities
Reserves240Deposits1500
Loans1260

Suppose that Bank of America 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 Capital One.

AssetsLiabilities
Reserves182Deposits1400
Loans1218

Suppose that Capital One is a typical bank and keeps only the required reserves. In addition, suppose that someone deposited $400.

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

Hint

Consider the following balance sheet for PNC.

AssetsLiabilities
Reserves705Deposits1500
Loans795

Suppose that someone deposited $200 at PNC.

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

Hint