1.For the following question, refer to the information in the bank balance sheet providedin Table 1.

(a)(1 point) What is this bank's reserve ratio?

(b)(1 point) If all banks in the economy had this reserve ratio, what would be themoney multiplier?

(c)(1 point) Given this money multiplier, how much money would be created if therewere a new $500 deposit?

(d)(1 point) How much money has the bank's ownership put into the bank?

(e)(1 point) Is this bank engaging in 100-percent-reserve banking or fractional-reservebanking?

Table 1: National Hypothetical Bank

Assets Liabilities

Reserves $1000 Deposits $1500

Loans$2000 Debt$3000

Securities $2000 Capital$500