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Consider the following balance sheet for Capital One.

AssetsLiabilities
Reserves684Deposits1900
Loans1216

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 Capital One.

AssetsLiabilities
Reserves1421Deposits2900
Loans1479

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 Capital One.

AssetsLiabilities
Reserves312Deposits1200
Loans888

Suppose that someone deposited $200 at Capital One.

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

Hint

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