Assume that the banking system has total reserves of $517 billion. Assume also that required reserves are 47 percent and that banks do not hold any excess reserves and households hold no currency. Now suppose that the Fed increased the required reserves to 56,4 . As a result of this new policy, by how much has the money supply changed? Hint Suppose that the required reserve ratio (R) is 37 percent and that banks do not hold any excess reserves. What is money multiplier, given this situation? Hint Suppose that PNC holds $2800 million in deposits and maintains a reserve ratio of 45%. Given that PNC's assets include only reserves and loans, what is the amount of PNC's loans? Hint