Banking Ninja

Banking Ninja!

First Credit Union

Assets Liabilities
Required Reserves - $1500 Demand Deposits - $10000
Excess Reserves - $6656 Owner's Equity - $3260
Loans - $7380 Debt - $4680
Bonds - $2404

1) What is the required reserve ratio?

2) What is the money multiplier?

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

4) If Ellen deposits $1000 into First 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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