1.Use the following information to answer the questions below.

Bank A shows Total reserves of $500,000, the required reserve ratio is 20% and the demand deposits are $800,000. The system is fully loaned up and there are no cash leakages. Use a T Account to record the information below

a.Required Reserves (5 points)

b.Excess Reserves (5 points)

c.Potential money supply creation. Show calculations (5 points)

d.Total money supply after all the rounds of lending (5 points)