Question B4 (a) Table 5 shows the balance sheet of the banking system of Country Z as of 31 May 2021. Assets $ (billions) 400 1,200 1,600 Liabilities $ (billions) 1,600 Reserve Loan Total Deposits Total 1,600 Table 5 The current required reserved ratio was 20% and the public holds $70 billion cash in hand. (1) Calculate the current money supply. Does the banking system fully loan up? Support your answer with relevant figure and show your workings. (5 marks) (ii) Draw a new balance sheet of the banking system of Country Z if the central bank decrease the required reserve ratio by 4% and the banking system is fully loaned up. Show your workings. (7 marks) (b) Hong Kong government decided to sell up to $2.55 billion retail green bond this month. Explain how this action could affect the money supply in Hong Kong