QUESTION 8 LAST NATIONAL BANK BALANCE SHEET ASSETS LIABILITIES & NET WORTH cash in the vault: $300,000 demand deposits: $3,000,000 deposit at the Fed $100,000 US treasury bonds: $300,000 loans: $1,900,000 building: $1,000,000 capital stock: $600,000 TOTALS: $3,600,000 TOTALS: $3,600,000 "Assuming the required reserve ratio is 20%, what will be the effect on the whole banking system?" O "Money in circulation will increase by $4,000,000." "Money in circulation will decrease by $4,000,000." O "Money in circulation will decrease by $1,000,000." "Money in circulation will decrease by $200,000." "There will be no impact