Today you visit the Publix on Ocala Road and notice that Heinz Ketchup is on sale for $3.99 per bottle. In this situation, money is functioning as a:

Assume the Reserve Ratio is 5%. The maximum increase in the size of the money supply (or total spending power – same thing) in response to an $8 billion increase in Excess Reserves for the US banking system is:

Government regulations are a major constraint on the ability of America’s private banking system to create new spending power through the loan-making process.

Assume the Reserve Ratio is currently 10%. The Hancock Whitney Bank on Mahan Drive currently holds no Excess Reserves. If $1,000 is deposited into this Hancock Whitney Bank location by one of its customers, then:

Suppose a private bank has $38,500,000 in transaction deposits and confronts a Reserve Ratio of 20%. The dollar value of this bank’s Required Reserves is:

Suppose a private bank has $24,000,000 in transaction deposits and confronts a Reserve Ratio of 15%. The dollar value of this bank’s Required Reserves is:

Suppose a private bank has $45,000,000 in transactions deposits and confronts a Reserve Ratio of 10%. This private bank currently holds $6,000,000 in Total Reserves. The dollar value of this bank’s Excess Reserves is:

To calculate the dollar value of a private bank’s Required Reserves, you must multiply the Reserve Ratio by the amount of transactions account balances on the bank’s balance sheet.

Suppose a private bank has $10,000,000 in transactions deposits and confronts a Reserve Ratio of 25%. This private bank currently holds $3,200,000 in Total Reserves. The dollar value of this bank’s Excess Reserves is:

Assume the Reserve Ratio is 20%. The maximum increase in the size of the money supply (or total spending power – same thing) in response to a $25 billion increase in Excess Reserves for the US banking system is: