Use the following to answer questions: 
-(Scenario: Assets and Liabilities of the Banking System) Refer to Scenario: Assets and Liabilities of the Banking System. If the reserve ratio is 5% and the banking system does NOT want to hold excess reserves, how much more can be added to the money supply?
Definitions:
Flexible Budget
A budget that shows the expected results of a responsibility center for several activity levels.
Static Budgets
Financial plans that remain unchanged over the budget period, irrespective of any variations in activity levels.
Master Budgeting
A comprehensive financial planning document that includes all of an organization's budgets for a specific period.
Budget Preparation
The process of creating a plan that estimates the revenue and expenses for a future period.
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