3. Answer the next questions based on the following consolidated balance sheet for the whole commercial banking system for a hypothetical economy. Assume the required reserve ratio is 20%. All figures are in billions of dollars. Assets Liabilities + Net Worth Reserves $ 60 Checkable deposits $200 Cash 40 Savings deposits $100 Securities 100 Short-term Time deposits $100 Loans 100 Stock shares 300 Property 400 a. What are the amount of M1 and M2 available in the above banking system? (2 marks) b. What is the amount of excess reserves in this commercial banking system?(2 marks) c. What is the maximum amount that the money supply can be expanded? Show your workings. marks) (2 d. If the reserve ratio fell to 15%, what is now the maximum amount that the money supply can be expanded? Show your workings, including the computation of the new money multiplier. (2 marks)