Question: If the banking system is currently holding the following; $600 of reserves, $2400 of government securities, $3000 of loans, and $6000 of deposits, and the Reserve Ration =.10
A) list the assets and liabilities on the balance sheet for the banking system. Can banks make any loans?
B) The Fed makes an open market purchase of $15 of securities from the banks. List the items on the banking systems balance sheet before any lending takes place
C) List the items on the banking systems balance sheet after full monetary expansion has taken place.