Question Two: Use the following to answer questions below the table:

Table (1): ABC Bank balance sheet

Assets	Liabilities
Total Reserves AED 80,000	Demand Deposits AED 200,000
Loans AED 120,000

1) Refer to Table (1). With a required reserve ratio of 25 percent, ABC Bank could change Money

Supply of: (show your answer) .

2)Refer to Table (1). With total reserves of $80,000 and a required reserve ratio of 25 percent, ABC Bank could support maximum Money Supply of: (show your answer)