The monetary policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit is the Taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million Tazes of required reserves, 75 million Tazes of excess reserves, have issued 7500 million Tazes of deposits, and hold 225 million Tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all currency is on deposit at the bank.

1. Refer to Tazian. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the required reserve ratio and the reserve ratio for Tazian banks?
2. Refer to Tazian. Suppose that the Bank of Tazi changes the reserve requirement ratio to 3%. Assuming that the banks still want to hold the same percentage of excess reserves what is the value of the money supply after the change in the reserve requirement ratio?