A depositor decides to transfer $3,000 from a checking account to a savings account. Create a balance sheet for the bank and show how the balance sheet will be affected due to this change. Only list the changes on your balance sheet. Then explain what will happen to the M1 and M2 money supplies.

The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $5000 in currency into the bank and that currency is added to reserves. Recall, to calculate checkable deposits you have to add the original checkable deposits to the new deposit. To calculate required reserves for the deposits, you have to multiply the required reserve ratio (decimal from) by checkable deposits. To calculate excess reserves, you will subtract required reserves from actual reserves. Complete the table attached for the Third National Bank. You have to distinguish between a bank's assets and bank's liabilities.  The figures in the table attached are for the Third National Bank. All figures are in thousands of dollars. 1. What is the total assets of this bank?  Explain the basics of this bank’s balance sheet. 2. If the monetary multiplier is 4, what is the required reserve ratio? Describe how and identify by what amount the Third National…

Imagine you saved $2,500 at Bank of Prosperity. There, they maintain a reserve requirement of 9%. Create a T-account to show how Bank of Prosperity will allocate your deposit so that debits = credits. Then, using the money multiplier, show how your deposit affects the economy by providing dollars in the market for loanable funds.

The regional Federal Reserve Banks hold deposits for individuals and the commercial banks in their district. clear checks between private banks in their district. participate in open market operations in their district. All of the answers are correct.