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Question 1

Consider the following balance sheet for PNC.

AssetsLiabilities
Reserves837Deposits2700
Loans1863

Suppose that PNC is a typical bank and keeps only the required reserves. Given this data, what is the money multiplier?

Hint

Question 2

Consider the following balance sheet for PNC.

AssetsLiabilities
Reserves484Deposits1100
Loans616

Suppose that PNC 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

Question 3

Consider the following balance sheet for TD Bank.

AssetsLiabilities
Reserves400Deposits1000
Loans600

Suppose that someone deposited $200 at TD Bank.

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

Hint