(a)     Explain THREE (3) reasons what gives
money value even though they are token money.   
(b)   The following balance sheet is for a commercial
bank. Assume the required reserve ratio is 4 percent.
Assets   Liabilities and Net Worth
Reserves   $100,00   Checkable
Deposits   $300,000
Loans   140,000   Stock shares  
200,000
Securities   60,000      
Property   200,000      
(i)     Calculate the required
reserves.   
(ii)   Calculate the maximum amount that the money supply
can be expanded.   
(iii)    If the reserve ratio rises...