Question: need help with answers c,d & e please! Assume the banking system contains the following amounts. Use this information to answer five questions. Total reserves

Assume the banking system contains the following amounts. Use this information to answer five questions. Total reserves Transactions deposits Cash held by public Reserve requirement $50 billion $500 billion $100 billion 0.10 Instructions: Enter your responses as a whole number a. Are the banks currently fully utilizing their lending capacity? O No Yes b. What would happen to the money supply initially if the public deposited $50 billion of cash in transactions accounts? O No change Increase by $50 billion c. What would the lending capacity of the banking system be after this deposit? $6 billion ESTA d. How large would the money supply be if the banks fully utilized their lending capacity? billion e. What three policy tools could the Fed use to offset that potential growth in M1? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s). click the option twice to empty the box ? Lower the discount rate 3 Raise the reserve requirement Conduct open market purchases 2 Lower the reserve requirement ? Raise the discount rate 2 Conduct open market sales
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