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Consider the following balance sheet for PNC.

AssetsLiabilities
Reserves255Deposits1500
Loans1245

Suppose that PNC 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 Wells Fargo.

AssetsLiabilities
Reserves1320Deposits3000
Loans1680

Suppose that Wells Fargo is a typical bank and keeps only the required reserves. In addition, suppose that someone deposited $200.

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

Hint

Consider the following balance sheet for TD Bank.

AssetsLiabilities
Reserves450Deposits1000
Loans550

Suppose that someone deposited $400 at TD Bank.

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

Hint

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