Below is the balance sheet for the Bank of Upland at the start of business on October 1, 2020. The required reserve ratio is 4%. Based on this information, in your own words, answer the questions below.

Bank of Upland
Assets	Liabilities
$180 million Car Loans	$1000 million Demand Deposits
$520 million Treasury Bonds
$40 million Vault Cash
$120 million Business Loans
$30 million Credit Card Loans
$30 million on Deposit with the Fed
$80 million Mortgages
$1000 million Total Assets	$1000 million Total Liabilities

(a) At the start of October 1, 2020, determine the amount of Bank of Upland’s Total Reserves which can legally be loaned out (please show/explain how you got your answer).

(b) Calculate the Bank of Upland’s Money Creating Potential throughout the entire Banking System at the start of October 1, 2020 (please show/explain how you got your answer).

(c) During October 1, 2020 only one transaction takes place at the Bank of Upland. This one transaction is the Federal Reserve SELLS $80 million worth of Treasury Bonds to the Bank of Upland.

Based on the Federal Reserve SELLING $80 million worth of Treasury Bonds describe all the changes this SALE will have on this balance sheet for the Bank of Upland. State which assets and/or liabilities will change (increase or decrease) and state the numeric value of the increase or decrease. Also state any change in the Total Assets number of $1000 million and the Total Liabilities number of $1000 million.

(d) Determine the amount of Bank of Upland’s Total Reserves which can legally be loaned out as of October 2, 2020. Please show/explain how you got your answer.

(e) Calculate the Bank of Upland’s Money Creating Potential throughout the entire Banking System as of October 2, 2020 (please show/explain how you got your answer).

(f) Explain the reason the Federal Reserve would SELL these T-bonds to the Bank of Upland and explain what the Federal Reserve is worried about. (In other words, what economic condition is the Fed trying to avoid and how would the bond SALE help the Fed to avoid this economic condition.) Make sure to use your answers to (b) and (e) in your answer here.