Suppose that the total holdings of banks in the U.S. were as follows: required reserves = $45 million excess reserves = $15 million deposits = $750 million loans = $600 million Treasury bonds = $90 million a) Draw a T-account and show that the balance sheet balances if these are the only assets and liabilities. b) What happens to each of these values if banks reduce their holdings of Treasury bonds by $77.5 million and the central bank changes the reserve requirement ratio to 5%? Illustrate your answer with a new T- account. c) Assume that people hold no currency. How much does the money supply change by if banks use their excess reserves to make loans? (1) Draw a new Taccount to illustrate your answer to part (c). e) What could be a reason(s) that the actual money supply change is different 'om your answer to part (c)? In your answer, please state if the money supply change could be lower or higher, and why