please answer question: 9, 10 and 11

9 Suppose that the T~accour1t for First State Bank is as follows: b First State Bank Assets Liabilities Reserves $1 00 000 Deposits $1 000 000 Loans 900 000 Suppose a borrower from FSB (First State Bank) pays off their loan and no one else wants to take out a loan; (Suppose they had a $200000 loan from FSB') How does this affect their balance sheet? If people aren't taking out loans, how does this affect the money supply? 10 Suppose that banks hold reserves of 5 per cent against cheque account deposits. a b If the RBA sells $1 million of government securities, what is the effect on the economy's reserves and money supply? Suppose banks decide to increase their reserves to 10 per cent. Why might banks choose to do so? What effect does this have on the money supply? 11 Suppose MacroComp. a major software company. buys PCGames, a small Australian company that produces computer games. They draw a cheque on their account at Which Bank for $100 million. The owners of PC Games deposit this cheque in their account at That Bank. a b c Show what happens to the balance sheet of both Which Bank and That Bank. Show the balance sheet of their exchange settlement accounts at the RBA. If the sale of the software company is the largest transaction of the day, which of the two banks is more likely to have to borrow money on the short-term money market