Question 4 (25 points) You are President of bank here in Fort Kent. Assume you have deposit totaling $1,000,000. Now, assume the Required Reserves are 10%. 1. How much money do you have to loan out? 2. Assume the Required Reserves are 20% and the Federal Reserve has just offered to sell you a Treasury Note worth $400,000. If you buy the Note, how much do you have to loan out now? 3. Assume the Required Reserves drops to 10% and the Federal Reserve wants to buy that Treasure Note back (and give you 5% on the note) how much would have in loanable funds then? 4. Assuming there is a trend towards inflation, if you ran a bank, would that make you more willing to loan out money or less willing? Explain your answer Question 4 (25 points) You are President of bank here in Fort Kent. Assume you have deposit totaling $1,000,000. Now, assume the Required Reserves are 10%. 1. How much money do you have to loan out? 2. Assume the Required Reserves are 20% and the Federal Reserve has just offered to sell you a Treasury Note worth $400,000. If you buy the Note, how much do you have to loan out now? 3. Assume the Required Reserves drops to 10% and the Federal Reserve wants to buy that Treasure Note back (and give you 5% on the note) how much would have in loanable funds then? 4. Assuming there is a trend towards inflation, if you ran a bank, would that make you more willing to loan out money or less willing? Explain your