Banking Question 2 Please use the balance sheet for Bank Alpha to answer the questions. Assume Bank Alpha loans all of its excess reserves, and the assets and liabilities balance on the balance sheet. Show all work. Bank Alpha Assets Liabilities Required Reserves Checking Deposits $5,000.00 Loans $27,000.00 Saving Deposits $25,000.00 а. How much is X, the dollar amount of reserves? b. How much is the required reserve ratio? How much is the M? C. Assume Bank Alpha loans its excess reserves to Bank Beta. Next Bank Beta loans their excess reserves с. to Bank Gamma. Please create balance sheets for Banks Beta and Gamma. Assume there are no excess reserves in this banking system.

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Banking Question 2
Please use the balance sheet for Bank Alpha to answer the questions. Assume Bank Alpha loans all of its
excess reserves, and the assets and liabilities balance on the balance sheet. Show all work.
Bank Alpha
Assets
Liabilities
Required Reserves
Checking Deposits
$5,000.00
X
Loans
$27,000.00
Saving Deposits
$25,000.00
a.
How much is X, the dollar amount of reserves?
b. How much is the required reserve ratio? How much is the M ?
Assume Bank Alpha loans its excess reserves to Bank Beta. Next Bank Beta loans their excess reserves
to Bank Gamma. Please create balance sheets for Banks Beta and Gamma. Assume there are no excess
reserves in this banking system.
C.
d.
How much total money stock created in this banking system?
е.
What is the total of M1 for Bank Alpha? M2?
Transcribed Image Text:Banking Question 2 Please use the balance sheet for Bank Alpha to answer the questions. Assume Bank Alpha loans all of its excess reserves, and the assets and liabilities balance on the balance sheet. Show all work. Bank Alpha Assets Liabilities Required Reserves Checking Deposits $5,000.00 X Loans $27,000.00 Saving Deposits $25,000.00 a. How much is X, the dollar amount of reserves? b. How much is the required reserve ratio? How much is the M ? Assume Bank Alpha loans its excess reserves to Bank Beta. Next Bank Beta loans their excess reserves to Bank Gamma. Please create balance sheets for Banks Beta and Gamma. Assume there are no excess reserves in this banking system. C. d. How much total money stock created in this banking system? е. What is the total of M1 for Bank Alpha? M2?
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