How do you do part (c) and (d)?

3. The Federal Reserve buys $4, in US treasuries from Jonas Consulting, Inc. Jonas Consulting Inc. then deposits the money into Utis Bank [6) a)]f the reserve requirement is l%, how much does the Fed's purchase impact the money supply? [1) b) If the Fed decides to change the reserve requirement to 2'l'r prior to making these purchases calculate the following i. The maximum amount the bank could lend from this deposit. (1) ii. The maximum total increase in the money supply from the Fed's hond purchase of $40,000. [1] c)What if instead of loaning out all this newlyr deposited money, hanks decide to keep some of the bond proceeds as excess reserves. How would this affect your answer in problem b]ii above? (1) d) Assume that even with this deposit Otis Bank cannot meet its required reserve amount at the end of the day. Name two options it has to avoid insolvency. {2]