Q1. Suppose the reserve requirement for all banks is 20 percent and the nation's banks initially have no excess reserves. Suppose you find $1 million of old currency in your grandmother's attic and deposit it into her bank checking account. Calculate: a. The change in reserves in your grandmother's bank b. The change in required reserves in your grandmother's bank c. The change in excess reserves in your grandmother's bank d. The maximum amount by which your grandmother's bank can expand its loans e. The maximum amount the entire banking system can expand its loans f. The potential expansion in the nation's deposits resulting from the initial deposit in your grandmother's bank g. The potential expansion in Mi Q2. Suppose the percentage reserve requirement set by the Federal Researve is 15 percent. Now, suppose the Fed purchases $1,000 million worth of U.S. Treasury securities through government securities dealers in New York. Calculate the impact of the Fed's action on: 1. Reserves 2. Required reserves 3. Excess reserves 4. The initial, direct change in the money supply 5. The eventual change in the money supply after all banks have rid themselves of all their excess reserves Q1. Suppose the reserve requirement for all banks is 20 percent and the nation's banks initially have no excess reserves. Suppose you find $1 million of old currency in your grandmother's attic and deposit it into her bank checking account. Calculate: a. The change in reserves in your grandmother's bank b. The change in required reserves in your grandmother's bank c. The change in excess reserves in your grandmother's bank d. The maximum amount by which your grandmother's bank can expand its loans e. The maximum amount the entire banking system can expand its loans f. The potential expansion in the nation's deposits resulting from the initial deposit in your grandmother's bank g. The potential expansion in Mi Q2. Suppose the percentage reserve requirement set by the Federal Researve is 15 percent. Now, suppose the Fed purchases $1,000 million worth of U.S. Treasury securities through government securities dealers in New York. Calculate the impact of the Fed's action on: 1. Reserves 2. Required reserves 3. Excess reserves 4. The initial, direct change in the money supply 5. The eventual change in the money supply after all banks have rid themselves of all their excess reserves