Answer Happy

Suppose a tonery winiet deposits 512 million in cash into her transactions account at the Bank of America (Beta) Assume a serve reguvement of 10 percent and no excess reserves in the banking system prior to the deposit Instructions: Round your responses to two decimal places a. Use the following account to show how her deposiitially affects the balance sheet at Bota Step 1. Bank of America Assets millions Liabilities in millions Reserve Deposits Regard ES Loan Touls b. Has the money supply been changed by her deposit? c. Use the following account to show the changes at BotA after the bank fully uses its new lending capacity
- Use the following account to show the changes at Bota ather the bank my uses the new terdirig capacity Sep Bank of Am atanles ) R Deposite Tips Esc La Tule Total d. Has the money supply been changed by step 2? e Aher the entire banking system uses the lending capacity of the initial ($12 million deposit, by how much will the following have changed? Total reserves million Total deposits milion Total loans The money supply: 5 mon