SHOW DETAILED CALCULATIONS...Thank you!

**F is not based on A

1. Assume that there is only one bank in the economy that is fully loaned up with $420 million in reserves, $8.4 billion in deposits and $7.98 billion in loans. a. Based on this information, show this bank's simplified T-account. Assets Liabilities b. What is this bank's reserve requirement ratio? c. What is the size of the money multiplier? d. What does this value mean in simple words? e. Show how this bank's T-account will look like when it makes new loans if the Federal Reserve buys $180 million worth of government securities in open market? Assets Liabilities f. Show how this bank's T-account will look like when it recalls some of its loans if the Federal Reserve sells $120 million worth of government securities in open market? Assets Liabilities