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14) Answer the following questions about the money creation process a. Create a T-account for a bank. Correctly place the following terms on it, as done in class b. Suppose the Fed wants to increase the money supply in hopes of eventually lowering c. Suppose a bank receives $50,000 from the Fed for some government bonds. if the assets, liabilities, equity, deposits, loans, reserves, securities. interest rates. Should it buy or sell bonds? Explain. required reserve ratio is 10%, how much new excess reserves does the bank have? Show your work. Suppose a bank decides to lend out $50,000. If the currency drain ratio is 25% how much will the person that received the loan hold as currency? d. 14) Answer the following questions about the money creation process a. Create a T-account for a bank. Correctly place the following terms on it, as done in class b. Suppose the Fed wants to increase the money supply in hopes of eventually lowering c. Suppose a bank receives $50,000 from the Fed for some government bonds. if the assets, liabilities, equity, deposits, loans, reserves, securities. interest rates. Should it buy or sell bonds? Explain. required reserve ratio is 10%, how much new excess reserves does the bank have? Show your work. Suppose a bank decides to lend out $50,000. If the currency drain ratio is 25% how much will the person that received the loan hold as currency? d

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