ctice Bunches O Church my mick Total mounts c. By how much has the money supply changed as a result of the lower reserve requirement (itep BJ? billion d. Now suppose the Fed buys $20 billion of securities directly from the banks. What will the banks' books look like Immediately after this purchase but before the banks make any additional loans? Auseto [in Dillons) Trans botom Loans Toul avvets o. How much excess reserves do the banks have now? billion [ By how much can the money supply now increase? MacBook AirCheck my Suppose a banking system with the following balance sheet has no excess reserves. Assume that banks will make loans in the full Inadequate reserves. amount of any excess reserves that they acquire and will Immediately be able to eliminate loans from their portfolio to cover Assets [In Billions] Liabilities (In Billions) Total reverves $100 Transactions nocount Securities 5200 $400 $500 Total assets $600 Total lab Ison $900 Instructions: In part a, enter your response as a percentage rounded to one decimal place. For all other parts, enter your responses as a whole number. a. What is the reserve requirement? b. Suppose the reserve requirement is changed to 8 percent. Reconstruct the balance sheet, of the total banking system after all banks have fully utilized their lending capacity. Assets (in Billions) Liabilities (in Billiony] Total reserves Transactions 11 of 15 Score answer >