The Money Multiplier Process Initial Loan Loan Loan Bank etc. deposit University Bank Bank Deposit Deposit Deposit ($100) Bank #2 #3 #4 Excess reserves: $25 Excess reserves: $6.25 Excess reserves: $1.56 Excess reserves: $0.39 Required reserves: $75 Required reserves: $18.75 Required reserves: $4.69 Required reserves: $1.17 Instructions: Round your response to two decimal places. a. What volume of loans can the banking system in the figure support? b. If the reserve requirement were 50 percent rather than 75 percent, what would the system's lending capacity be