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Question 1

Consider the following balance sheet for TD.

AssetsLiabilities
Reserves672Deposits2100
Loans1428

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

Consider the following balance sheet for US Bank.

AssetsLiabilities
Reserves150Deposits1000
Loans850

Suppose that US Bank 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?

Consider the following balance sheet for Wells Fargo.

AssetsLiabilities
Reserves378Deposits2700
Loans2322

Suppose that someone deposited $500 at Wells Fargo.

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


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