Table 14 shows the balance sheet of the Tenth National BankAssetsLiabilitiesReserves$517Deposits$4,136Loans$3,619Total:$4,136Total:$4,136Refer to Table 14. Assume that this bank lends out its entire excess reserves. If Jerry deposits $426of cash in a checking account in the Tenth National Bank, what's the maximum change in themoney supply in the economy?O $2,982 GO $3,408O $3,696O $4,200O $4,136

Given information: Deposits = $4136Reserves = $517Loans = $3619

Answered: Table 14 shows the balance sheet of the…

Table 14 shows the balance sheet of the Tenth National Bank Assets Liabilities Reserves $517 Deposits $4,136 Loans $3,619 Total: $4,136 Total: $4,136

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 13P

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Question

Table 14 shows the balance sheet of the Tenth National Bank
Assets
Liabilities
Reserves
$517
Deposits
$4,136
Loans
$3,619
Total:
$4,136
Total:
$4,136
Refer to Table 14. Assume that this bank lends out its entire excess reserves. If Jerry deposits $426
of cash in a checking account in the Tenth National Bank, what's the maximum change in the
money supply in the economy?
O $2,982 G
O $3,408
O $3,696
O $4,200
O $4,136

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