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Consider the following balance sheet for TD.

AssetsLiabilities
Reserves228Deposits1200
Loans972

Suppose that TD 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 TD.

AssetsLiabilities
Reserves220Deposits2000
Loans1780

Suppose that TD is a typical bank and keeps only the required reserves. In addition, suppose that someone deposited $100.

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

Hint

Consider the following balance sheet for Citi.

AssetsLiabilities
Reserves860Deposits2000
Loans1140

Suppose that someone deposited $300 at Citi.

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

Hint