Assume that RRR=20% and the following transactions happens in the given order:

i. Central Bank buys T-bonds from Bank A in the value of $8000.

ii. Bank A lends $6000 to Jim.

iii. Jim deposits $5000 in Bank B.

iv. Bank B lends $4000 to Sherry.

v. Sherry deposits $3000 to Bank C and Bank C keeps all proceedings in the reserves.

a. Calculate the change in required reserves in the banking sector as a result of actions i-v.

b. Calculate the change in excess reserves in the banking sector as a result of actions i-v.

c. Calculate the change in deposits in the banking sector as a result of actions i-v.

d. Calculate the change in cash in circulation as a result of actions i-v.

e. Calculate the change in monetary base as a result of actions i-v.

f. Calculate the change in money supply (M1) as a result of actions i-v.