2. [12 points in total] Consider the following simplied balance sheet for a bank: Assets Liabilities Reserves: $10,000 Deposits: $70,000 Loans: $66,000 Shareholders' equity: $6,000 a) If the desired reserve ratio is 0.1, or 10 percent, how much in excess reserves does the bank hold? (2 points) B) What is the maximum amount by which the banking gstem can expand its loan? (4 points) C) With the amount of loan the bank makes in part b), how much does this action impact the money supply? (2 points) D) If the bank makes the loans in part b), show the immediate impact on the bank's balance sheet. (4 points)