Below is an extract of information from the balance sheet of a commercial bank. ASSETS (Millions) LIABILITIES (Millions) Reserves 250 Deposits 1,750 Loans 1,500 The required reserve ratio is 20 percent (a) How much is the bank required to hold as reserves? (5 Marks) (b) Calculate the bank's excess reserves. (5 Marks) (c) By how much can the bank increase its loans? (5 Marks) (d) Suppose a depositor comes to the bank and withdraws Ksh. 100m in cash. 1. Show the bank's new balance sheet, assuming the bank obtains the cash by drawing down its reserves. (3 Marks) ii. Does the bank now hold excess reserves? (1 Mark) ii. Is the bank meeting the required reserve ratio? (1 Mark)