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answer the following 0 Suppose that the T-account for National Commercial Bank is as follows: Assets (thousands) Liabilities (thousands) Reserves SR 100 Deposit SR 800

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0 Suppose that the T-account for National Commercial Bank is as follows: Assets (thousands) Liabilities (thousands) Reserves SR 100 Deposit SR 800 Loan SR 700 Total SR 800 SR 800 a. If SAMA requires banks to hold 5% of deposits as reserves requirement, how much in excess reserves does the National Commercial Bank now hold? b. If National Commercial Bank decides to reduce its reserves to only the required amount, will the economy's money supply increase or decrease? Explain. c. What is the money multiplier in this economy?|

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