Answer blanks: 1. increases, decreases 2. net worth, reserves, loans, checkable

Question

Answer blanks:

1. increases, decreases

2. net worth, reserves, loans, checkable deposits, building and furniture

3. $225,000, $1,800,000, $900,000, $675,000

4. increase, decreases

5. net worth, reserves, loans, checkable deposits, building and furniture

6. $675,000, $900,000, $1,800,000, $225,000

7. decreases, increases

8. $675,000, $337,500, $0, $450,000

9. increases, decreases

10. $225,000, $900,000, $1,125,000, $450,000

11. $2,700,000, $22,500,000, $360,000, $3,600,000

12. $270,000,  $2,700,000, $22,500,000, $3,600,000

Explanation / Answer

The fill in the blanks paragraph wise will be as follows:

Increases , Networth

Decrease, Loans, $675,000, Checkable deposits, Increase, $900,000

Increases, $225000, Checkable deposits, $225000

Bank Increase in Checkable Deposits Increase in Required Reserve Increse in Loans First Main Street Bank $ 900,000 $225,000 $ 675,000 Second Republic Bank $ 675,000 $ 168,750 $ 506,250 Third Fidility Bank $ 506,250 $ 126,563 $ 379,687

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