Money, Bank Credit, and Economic Cycles - The Ludwig von Mises ...

226 Money, Bank Credit, and Economic CyclesWhen Z withdraws 900,000 m.u. to pay Y, Bank A’s balancesheet would appear as follows:(43) Bank ABalance Sheetc=0.1 and k=0AssetsLiabilitiesCash 100,000 Demand deposits 1,000,000Loans to Z 900,000Total Assets 1,000,000 Total Liabilities 1,000,000If Y, in turn, deposits the 900,000 m.u. in his bank, Bank B,also a small bank with a k equal to zero and a c equal to 0.1,the following journal entries would result:Bank B(44) Debit Credit900,000 Cash Demand deposits 900,000810,000 Loans to V Demand deposits 810,000810,000 Demand deposit Cash 810,000And Bank B’s balance sheet would look like this:(45) Bank BBalance Sheetc=0.1 and k=0AssetsLiabilitiesCash 90,000 Demand deposits 900,000Loans to V 810,000Total Assets 900,000 Total Liabilities 900,000