a) If the Bank of Jamaica sells $400 million of bonds to Sagicor Bank, using 7 accounts to explain your answer, show: a. the impact on reserves (3 marks) b. the impact on monetary base (3 marks) b) If the Bank of Jamaica lends to Bank of Novia Scotia an extra $500 million, but depositors withdraw $100 million and hold it as currency, using T accounts to explain your answer, show: a. The impact on reserves (2 marks) b. The impact on monetary base (2 marks) QUESTION 2 Total - 10 MARKS Assuming a required reserve ratio of 20% and banks hold excess reserves of 10%: a) If National Commercial Bank receives an extra $200 million from deposits, how much money will be created? (8 marks) b) John Brown is a Developer who has just completed an apartment building in Kingston Jamaica. The profits from the sale from the these apartments is $200 million. He deposited the $200 million in the National Commercial Bank Jamaica. The Bank decides not to lend any of these reserves out, how much deposit creation takes place for the entire banking system? (2 marks)