1 Suppose a bank has demand deposits of $500mm, reserves of $150mm, Loans of $100mm, and Securities of $300mm. Now suppose that $50mm is deposited into the bank. Initially, the reserve ratio is 15%. a How much total money can the bank lend? b How much of the additional money ($50mm) can the bank lend? c. If the additional money is lent out. what is the increase in money supply? d If the money multiplier works perfectly, how much can the entire banking system lend? e. If the Fed raises the reserve ratio to 20%, what are your answers to a,b,c, and d? f If the Fed bot $50mm of securities from the bank, how would this affect the money supply, assuming all the new money is loaned out? Answer all questions. Also, show your work on a balance sheet for the bank.