Suppose that the required reserve ratio is 9%, currency in circulation is $620 billion, the amount of checkable deposits is $950 billion, and excess reserves are $15 billion.

1. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier.

2. If the Fed sells $600 million of bonds to the First National Bank, what happens to reserves, the monetary base, and the money supply, based on the money multiplier from question 1? Use T-accounts to explain your answer. Please show the required reserve and excess reserve, respectively.