Suppose that Kesha deposits $7,000 into her savings account at First Bank. The reserve requirement facing First Bank is 9%. Instructions: Enter your answer as a whole number, If you are entering a...

Extracted text: Suppose that Kesha deposits $7,000 into her savings account at First Bank. The reserve requirement facing First Bank is 9%. Instructions: Enter your answer as a whole number, If you are entering a negative number include a minus sign. a. Use this information to show how First Bank's assets and liabilities Initially change when Kesha deposits the $7000 in the bank. A Simple Bank Balance Sheet Assets Liabilities Change in Reserves: $ Change in Deposits: $ b. How much money can First Bank lend out to other people? c. Now suppose that First Bank holds no excess reserves and lends out all of the excess reserves resulting from Kesha's deposit. How do First Bank's assets and labilities change? A Simple Bank Balance Sheet Assets Liabilities Change in Reservesi Change in Loans