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A2-3. Imagine an economy that keeps all of its money in the form of deposits in a banking system that has a 5% reserve ratio. If the central bank buys 10B of government bonds from the banking system, then loans, deposits and the money supply will increase by 200B when the banking system returns to equilibrium. PLEASE make sure to include a bank balance sheet with this as that is what I am struggling with the most. Thank you!.

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A2-3. Imagine an economy that keeps all of its money in the form of deposits in a banking system that has a 5% reserve ratio. If the central bank buys 10B of government bonds from the banking system, then loans, deposits and the money supply will increase by 200B when the banking system returns to equilibrium. PLEASE make sure to include a bank balance sheet with this as that is what I am struggling with the most. Thank you!

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