1. A client deposits $200 in cash in her bank. If the reserve ratio in the banking system is 6%:
2. What's the initial change in the excess reserves in the depositor's bank? (2)
3. Calculate the maximum amount of change in the money supply stemming from this transaction once the process of money creation in the banking system it initiates has been exhausted. (3)

2. A client deposits $200 in cash in her bank. If the reserve ratio in the banking system is 6%: a. What's the initial change in the excess reserves in the depositor's bank? (2) b. Calculate the maximum amount of change in the money supply stemming from this transaction once the process of money creation in the banking system it initiates has been exhausted. (3)