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1-6 need help with, greatly appreciate it. 1. South Holland Bank has $130,000 in demand deposits and actual reserves of $30,000. If the reserve ratio

1-6 need help with, greatly appreciate it.

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1. South Holland Bank has $130,000 in demand deposits and actual reserves of $30,000. If the reserve ratio is 20%. how much can South Holland Bank, acting alone. raise the supply of money? 2. Given the same conditions above, by how much could South Holland Bank and the entire banking system expand the money supply? 3. Mr. Renz deposits $200 of cash into his checking account at his bank. Later that day, Mr. Schott takes out a loan for $1,000. By how much has the money supply changed after these two transactions? 4. Assume South Holland Bank operates with zero excess reserves and the reserve requirement is 15%. A customer deposits $100,000 into his checking account. How much will the bank hold in reserve and how much will the bank lend out? 5. Suppose the banking system has $2 trillion in outstanding checkable deposits and actual reserves of $500 billion. If the required reserve ratio were 10%, what could be added to the money supply within this banking system? 6. If the Fed lowers the reserve requirement, will the money supply increase or decrease

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