Table 1 Balance Sheet of the First National Bank

Assets	Liabilities
Reserves	$ 3,275	Deposit	$16,500
Loans	$13,225
Total Assets	$16,500	Total Liabilities	$16,500

Refer to Table 1. Assume that this is the balance sheet of the First National Bank. If the Federal Reserves decreases the reserve requirement from 9% to 7%. This bank's excess reserves will change by:

Group of answer choices

$1,485

$1,790

$1,155

$330

$2,120

Table 1

Balance Sheet
Assets	Liabilities
Reserves	$ 3,825	Deposit	$17,000
Loans	$13,175
Total Assets	$17,000	Total Liabilities	$17,000
Assume that this is the balance sheet of the only bank in this economy and that the money supply is entirely kept by the bank in either a checking or a savings account.

Refer to Table 1. Assume that this is the balance sheet of the only banks in this economy. Given a reserve requirement of 7.5 percent, what is the maximum potential increase in the money supply in the economy?

Group of answer choices

$2,550

$34,000

$36,400

$30,812.5

$46,750