Please be organized, and you can wriite in a paper with a pen or pencil and attach the image that would be more help full instead typing it.

ll. Creation of Money: Q-1 Suppose that the T account for Sovereign Bank is as follows and the reserve requirements ratio is 20% ASSETS LIABILITIES Cash Reserves $ 1,000 Demand Deposits $5,000 Loans 5 4,000 $ 5,000 $5,000 a) What is the size of the money multiplier?(4p0.im:s) b) With the present required ratio how much total money banking system can create? (4 points) 11:31 - 'n' as \\1 as..." 48%.5 2. Given the balance sheet below and assuming a required reserve ratio of 20 percent, how much (in dollar terms) must the bank hold in required reserves? (4 Liabilities and Net Worth $ 5 million Demand deposits $ 80 million $10 million $15 million $20 million Net worth $ 20 million Federal Reserve accounts Loans $50 million TOTAL LIABILITIES TOTAL ASSETS $100 million PLUS NET WORTH $100 million If the required reserve ratio is 0.2, and a bank has $100 million in demand deposits and $40 million in property and buildings, how much reserves it needs to hold? (4p01'nts)