Please just answer 3 and 4

QUESTION 3: 17 POINTS The required reserve ratio on checkable deposits is 10%. Suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, and excess reserves are $15 billion. To complete the following balance sheets, show the CHANGES of values for each item. For erample, if you think the value of an item decreased by $10, write down -$10. If you think the value of an item increases by $10, write down +$10. If you think the value of an item isn't changed, leave it blank. To answer the following algebra questions, round your result to TWO decimal places. (1) Calculate the currency deposit ratio, the excess reserve ratio, the money multiplier, the money supply and monetary base. (5 points) (2) Suppose the central bank conducts an unusually large open market purchase of bonds held by the First National Bank of $1400 billions due to a sharp contraction in the economy. Before the First National Bank turns proceeds to productive uses, update the balance sheet of the First National Bank. (2 points) First National Bank Liabilities+Capital Reserves: +$1400b Deposits: Securities: -$1400b Borrowings: Loans: Capital: Assets (3) Assume the ratios you calculated in part (1) remain the same. Calculate the change in money supply caused by the the multiple deposits creation and update the balance sheet. Assume all banks choose to turn money obtained into loans. (6 point) Assets Federal Reserve System Liabilities Currency in circulation: Securities: Lending to banks: Reserves: Assets Reserves: Securities: Loans: Banking System Liabilities+Capital Deposits: Borrowings: Capital: (4) Suppose the central bank conducts the same open market purchase as in part (2), except that banks choose to hold all of these money as excess reserves rather than loan them out, due to fear of a financial crisis. Assuming that currency and deposits remain the same, calculate the amount of excess reserves, the excess reserve ratio, the money supply, and the money multiplier. (4 points) QUESTION 3: 17 POINTS The required reserve ratio on checkable deposits is 10%. Suppose that currency in circulation is $600 billion, the amount of checkable deposits is $900 billion, and excess reserves are $15 billion. To complete the following balance sheets, show the CHANGES of values for each item. For erample, if you think the value of an item decreased by $10, write down -$10. If you think the value of an item increases by $10, write down +$10. If you think the value of an item isn't changed, leave it blank. To answer the following algebra questions, round your result to TWO decimal places. (1) Calculate the currency deposit ratio, the excess reserve ratio, the money multiplier, the money supply and monetary base. (5 points) (2) Suppose the central bank conducts an unusually large open market purchase of bonds held by the First National Bank of $1400 billions due to a sharp contraction in the economy. Before the First National Bank turns proceeds to productive uses, update the balance sheet of the First National Bank. (2 points) First National Bank Liabilities+Capital Reserves: +$1400b Deposits: Securities: -$1400b Borrowings: Loans: Capital: Assets (3) Assume the ratios you calculated in part (1) remain the same. Calculate the change in money supply caused by the the multiple deposits creation and update the balance sheet. Assume all banks choose to turn money obtained into loans. (6 point) Assets Federal Reserve System Liabilities Currency in circulation: Securities: Lending to banks: Reserves: Assets Reserves: Securities: Loans: Banking System Liabilities+Capital Deposits: Borrowings: Capital: (4) Suppose the central bank conducts the same open market purchase as in part (2), except that banks choose to hold all of these money as excess reserves rather than loan them out, due to fear of a financial crisis. Assuming that currency and deposits remain the same, calculate the amount of excess reserves, the excess reserve ratio, the money supply, and the money multiplier. (4 points)