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The table below is the balance sheet for all banks combined in the banking system....

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Accounting

The table below is the balance sheet for all banks combined in the banking system. All banks have a target reserve ratio of 7.5%.

Assets Liabilities/Equity
Reserves $78,000 $ 78000 Numeric ResponseEdit Unavailable. 78000 correct. Demand Deposits $900,000 $ 1039996.5 Numeric ResponseEdit Unavailable. 1039996.5 incorrect.
Loans 720,000 859996.5 Numeric ResponseEdit Unavailable. 859996.5 incorrect. Shareholders' equity 100,000 100000 Numeric ResponseEdit Unavailable. 100000 correct.
Securities 100,000 100000 Numeric ResponseEdit Unavailable. 100000 correct.
Fixed assets 102,000 102000 Numeric ResponseEdit Unavailable. 102000 correct.
Total 1,000,000 1139996.5 Numeric ResponseEdit Unavailable. 1139996.5 incorrect. Total 1,000,000 1139996.5 Numeric ResponseEdit Unavailable. 1139996.5 incorrect.

a. The amount of excess reserves is b. The maximum amount that loans and deposits could be increased by is $ c. Assume that the system becomes fully loaned up. Show the new balance sheet in the table above. d. Now that the system is fully loaned up, the money supply will have increased by

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