Consider the balance sheet of the following bank.
Reserves 3000 Checkable Deposits 5000
Loans 7000 Savings and Time Deposits 8000
Bond Holdings 4000 Equity 1000
Using balance sheets, show all the balance sheet steps of Chase making a loan of $1000. Provide a brief explanation for each step and assume that the loan check is re-deposited in another bank (provide a balance sheet for that bank as well). Verify how the money supply (M2) changes as a result