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Consider the following balance sheet for Bank of America.

AssetsLiabilities
Reserves319Deposits2900
Loans2581

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
Reserves560Deposits1600
Loans1040

Suppose that Capital One is a typical bank and keeps only the required reserves. In addition, suppose that someone deposited $500.

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

Hint

Consider the following balance sheet for TD Bank.

AssetsLiabilities
Reserves207Deposits2300
Loans2093

Suppose that someone deposited $200 at TD Bank.

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

Hint

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