Banking Ninja

Banking Ninja!

Second Credit Union

Assets Liabilities
Required Reserves - $15000 Demand Deposits - $100000
Excess Reserves - $36820 Owner's Equity - $4285
Loans - $36635 Debt - $4350
Bonds - $20180

1) What is the required reserve ratio?

2) What is the money multiplier?

3) If Second Credit Union loans out the rest of its available money, what is the maximum possible increase in the money supply?

4) If Bryant deposits $50 into Second Credit Union, what is the immediate increase in the money supply?

5) Given the deposit in (4) only, what is the maximum potential increase in the money supply?

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