Your short answer questions will most likely require graphs.

Assumptions:

• $100,000 has been deposited into Susan's BofA checking account.
• The Federal Reserve has established the Required Reserve ratio at 20%

1. What amount is required reserves?
2. What amount is excess reserves?
3. What is the money multiplier?
4. What is the maximum loanable dollars as a result of this initial deposit and 20% required reserve ratio?
5. If the Federal Reserve decreased the required reserve ratio to 10%, what's the new maximum loanable dollars available?