Banking Ninja

Banking Ninja!

Second Credit Union

Assets Liabilities
Required Reserves - $1500 Demand Deposits - $10000
Excess Reserves - $6238 Owner's Equity - $4617
Loans - $8887 Debt - $3795
Bonds - $1787

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 Kevin deposits $5000 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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