2 The reserve requirement. Complete the following information and write appropriate title or answers on each line. Assets Required Reserves $60 Excess Reserves $0 Securities $80 Loans 100 Total Assets $240 Balance Sheet for Banking System Liabilities Deposits $240 Net Worth $0 Total Liabilities and Net Worth $240 2.1 Based on the balance sheet, the initial reserve requirement is 60. 2.2 Suppose the Fed lowers the reserve requirement by 0.05. How many dollars of excess reserves does this create? 2.3 What is the additional lending capacity due to the change in the reserve requirement? 2.4 Reconstruct the Balance Sheet for Banking System with changes. New Balance Sheet for Banking System Required Reserves 63 Deposits Excess Reserves $0 Securities 80 Loans 100 Net Worth $0 Total Assets Total Liabilities and Net Worth 2.5 What is the expansion of the Money Supply? 2.6 Loans have gone up by