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Question 1

Consider the following balance sheet for PNC.

AssetsLiabilities
Reserves403Deposits1300
Loans897

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 Capital One.

AssetsLiabilities
Reserves1450Deposits2900
Loans1450

Suppose that Capital One 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 US Bank.

AssetsLiabilities
Reserves462Deposits2100
Loans1638

Suppose that someone deposited $600 at US Bank.

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

Hint