Q4. The following table shows a simplified consolidated balance sheet for the banking system (all figures are in billions). The required reserve ratio is 25%

Assets	Liabilities &Equity
Reserves 240 Fixed Assets 260 Loans 500	Checkable Deposits 1,000

A. What is the amount of excess reserves in this banking system?

B. Calculate the money multiplier? Interpret its meaning

C. What is the maximum amount the banking system might lend?

D. Show how the balance sheet would look after this amount has been lent (construct new balance sheet).