Answer:
UBL Bank
The result of this decrease in the reserve requirement in the balance sheet is reflected on the total amount of money created by UBL Bank increasing from PKR 46,000 million to PKR 57,500 million.
Explanation:
Current transaction deposits on balance = PKR 4,600 million
Reserve requirement = 10 percent of transaction deposits
This implies that UBL Bank can create more money up to (4,600/0.1) million = PKR 46,000 million
If the State Bank of Pakistan decreases the reserve requirement to 8 percent, the money creation ability of UBL Bank will increase to (4,600/0.08) million = PKR 57,500 million
The effect of this change on its balance sheet is PKR 11,500 million. This implies that UBL Bank's ability to create money is increased by PKR 11,500 million.