1.Assume that PerunaBank is a simple bank: it takes in deposits, makes loans, and has no capital. What value of loans does the bank have outstanding? Assume PerunaBank does not hold any excess reserves on top of the mandatory ones as given by the reserve-deposit ratio.2.Assuming no change in the money multiplier, calculate, in dollars, how much (in dollars) the central bank needs to transact to increase the money supply by 10 percent. In other words, how much (in dollars) does the monetary base need to increase for money supply to increase by 10 percent?Money supply = 6000Currency deposit ratio= 0.5Monetary base= 5000Money multiplier = 2

D Exercise 3: Monetary Policy in the Long Run In the nation of SMULand, people hold $2,000 of currency and $4,000 of demand deposits in the only bank, PerunaBank. The reserve-deposit ratio is 0.25. Answer the following numerical questions using this information. D Question 14 2.5 pts