Chapter 13 Homework A Saved 5 Suppose that a lottery winner deposits $4 million in...
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Chapter 13 Homework A Saved 5 Suppose that a lottery winner deposits $4 million in cash into her transactions account at the Bank of America (B of A). Assume a reserve requirement of 10 percent and no excess reserves in the banking system prior to this deposit. 7.69 points Instructions: Round your responses to two decimal places. a. Use the following T-account to show how her deposit initially affects the balance sheet at B of A. eBook Step 1 - Bank of America Assets (in millions) Liabilities (in millions) Reserves Deposits Required Excess Print Loans References Total assets Total liabilities b. Has the money supply been changed by her deposit? (Click to select) c. Use the following T-account to show the changes at B of A after the bank fully uses its new lending capacity. Step 2 - Bank of America Assets in millions) Liabilities (in millions) Reserves Deposits Required Excess Loans Total assets Total liabilities d. Has the money supply been changed by step 2? (Click to select) e. After the entire banking system uses the lending capacity of the initial ($4 million) deposit, by how much will the following have changed
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