3. a. You are given the following information. The required reserve ratio is 5%, banks hold no excess reserves, and the public holds no currency. The Fed buys $50M in Treasury bonds from a bond dealer. The bond dealer deposits the check in its account in Bank A. Use T accounts to show the impact on the balance sheets of (i) the Fed, (ii) the bond dealer (nonbank public), and (iii) Bank A (before Bank A lends out its new excess reserves). b. (i) What is the M1 money multiplier? Give a numerical answer. (ii) What is the deposit multiplier? Give a numerical answer. Once the money multiplier process is complete, what are the changes in (i) the demand deposits of the banking system, (ii) the loans of the banking system, (iii) the reserves of the banking system, and (iv) currency held by the public. Give numerical answers. c. Now assume that the excess reserve ratio of 3% and a currency-deposit ratio of 40%. d. Rework Rework part (c). part (b). e. 3. a. You are given the following information. The required reserve ratio is 5%, banks hold no excess reserves, and the public holds no currency. The Fed buys $50M in Treasury bonds from a bond dealer. The bond dealer deposits the check in its account in Bank A. Use T accounts to show the impact on the balance sheets of (i) the Fed, (ii) the bond dealer (nonbank public), and (iii) Bank A (before Bank A lends out its new excess reserves). b. (i) What is the M1 money multiplier? Give a numerical answer. (ii) What is the deposit multiplier? Give a numerical answer. Once the money multiplier process is complete, what are the changes in (i) the demand deposits of the banking system, (ii) the loans of the banking system, (iii) the reserves of the banking system, and (iv) currency held by the public. Give numerical answers. c. Now assume that the excess reserve ratio of 3% and a currency-deposit ratio of 40%. d. Rework Rework part (c). part (b). e