Assets Liabilities Reserves $4,000 Demand Deposits $20,000 Loans $16,000 #3 (896) For all of the questions below, assume that banks are profit maximizers such that they will ! much as legally possible and the required reserve ratio is 10 percent end out as 1) Based on the T-acct above for Sulivan National Bank, how much are its excess reserves? $2 0s 2) As soon as this bank lends out all that it can (without any other bank deposits and lanS no ripple effect), how much has the money supply changed? S /C 3) Now considering all banks collectively, what is the maximum that the money supply can change as a result of Sullivan National Bank's lending out its excess reserves?$2001R r, b) 4) If the Federal Reserve buys a $1000 bond from this bank, at most how much would the money supply change as a result of this action? 100 %-10,000