Assume the Fed purchases $17,450 worth of U.S. Treasury bonds from Warren Buffett, who promptly deposits the money in the First National Bank. Assuming that the required reserve ratio is 4.4 percent and banks keep zero excess reserves, the money supply in the economy will eventually:

Group of answer choices

increase by a maximum of $16,682.

increase by a maximum of $17,450.

increase by a maximum of $396,591.

increase by a maximum of $436,250.

increase by a maximum of $76,780.

Suppose the Federal Reserves' purchase of government bonds results in a $14,000 increase in the excess reserves of a particular bank. What would be the applicable reserve requirement for the whole banking system to be able to expand the money supply by $70,000?

Group of answer choices

5 percent

2 percent

50 percent

20 percent

10 percent