15 18/2011 i shes Where torture Comes w Revision Date 2506201 Group Work 2 Form No ECTIACATO) 06 Question 1. (4 marks) Assume that the ABC State bank begins with the balance sheet below and is fully loaned up. ABC State Bank Assets Liabilities Vault cash $2,500 Deposits at the Federal Reserves $7,500 Deposits 100,000 Loans $ 90,000 a) Calculate bank reserve Ratio. (2 marks) b) Consider that the reserve requirement is 10%, calculate the potential end change in money supply if there is a decrease of $ 6,000 decrease in deposit. (2 marks)