Question 2 [20 marks) Suppose that the T-account for First Commercial Bank before the introduction of a new reserve requirement as stated in question 3.1 is as follows: Assets Liabilities Reserves $200,000 Deposits $1,000,000 Loans $800,000 2.1) If the central bank requires banks to hold 10 percent of deposits and reserves, how much in excess reserves does First Commercial Bank hold? (10 marks) 2.2) According to question 3.1, assume that all other banks hold only the required amount of reserves. If First Commercial Bank decides to reduce its reserves to only the required amount, by how much would the economy's money supply increase? (10 marks)