Get Solutions for: Suppose the simplified consolidated balance sheet shown below is

a. What amount of excess reserves does the commercial banking system have? What is the maximum amount the banking system might lend? Show in column 1 how the consolidated would look after this amount has been lent. What is the monetary multiplier? b. Answer the questions in part a assuming the reserve ratio is 20 percent. Explain the resulting difference in the lending ability of the commercial bankingsystem.