This is my economics homework. I specifically need help with this section regarding money and banking systems, like question 2 which has accounting in it and question 1b are difficult.

. - '-, _.. ---- ...------- ----- l---- .a......._ _'_'_.J .... - -- refer to the previous assignments for writing instruction. (Total 1 6 Points) Module 6 Ch.14 Mung and Banking Problem 1 to 3 are adapted from Openstax Ch.14 problem 29 to 31. 1. (a) (2 points) If you take $100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change? Assume that there are no new loans created from the deposit. (Section 14.2) (b) (2 points) Now assume that the bank is subject to a minimum required reserve ratio of 20%, and the bank is going to use all the excess reserves to issue new loans, how much is the total change in money supply? (Section 14.4) (2 points) A bank has deposits of $400. It holds reserves of $50. It has purchased government bonds worth $70. It has made loans of 5500. Set up a T-account balance sheet for the bank, with assets and liabilities, and calculate the bank's net worth. (Section 14.3) Humongous Bank is the only bank in the economy. The people in this economy have $20 million in money, and they deposit all their money in Humongous Bank. (2 points) Humongous Bank decides on a policy of holding 100% reserves. Draw a T- account for the bank. (Section 14.3 and 14.4) (2 points) Humongous Bank is required to hold 5% of its existing 520 million as required reserves, and to loan out all the excess reserves. Draw a T-account for the bank after it has made its first round of loans. (Section 14.3 and 14.4) Ch.15 The Fed and Monetam Pollg Problem 4 and 5 are adapted from Openstax ch.15 review question 24 and problem 33. 4. Suppose the Fed conducts an open market purchase by buying $10 million in Treasury bonds from Acme Bank. . (2 points) Sketch out the balance sheet changes that will occur as Acme converts the bond sale proceeds to new loans. The initial Acme bank balance sheet contains the following information: Assets reserves 30, bonds 50, and loans 50; Liabilities - deposits 300 and equity 30. (Section 15.3) (2 points) Assume the required reserve ratio is 0.1 and other things stay the same, how much is the total change in money supply after the open market purchase of $10 million in Treasury bonds by the Fed? (Section 14.4 and 15.3) (2 points) What kind of monetary policy would you expect in response to high ination: expansionary or contractionary? Why? (Section 15.4)