Use the following information to answer questions 7-10:

The banking system has $8,000 in reserve, $22,000 in loans, and $30,000 in deposits. If the reserve requirement is 10%.

7. what is the maximum amount of loans the banking system could make? (1 point)

8. If the Fed lowers reserve requirement to 5%, what is the maximum amount of loans the banking system could make? (1 points)

9. If the Fed lowers reserve requirement to 5%, the banking system converts all excess reserves to loans, but borrowers return only 50% of these funds to the banking system as deposits. What is the maximum amount of loans the banking system could make? (1 points)

10. If the Fed lowers reserve requirement to 5%, the banking system converts 75% excess reserves to loans, but borrowers return only 60% of these funds to the banking system as deposits. What is the maximum amount of loans the banking system could make? (1 points