Question $3$ a$.$ Distinguish between legally required reserves and excess reserves. $(5$ marks$)$ b$.$ Why don$$t banks hold a $100$ percent reserves? $(2\mathrm{.}5$ marks$)$ c$.$ How is the amount of reserves bank hold related to the amount of money the banking system creates? $(3\mathrm{.}5$ marks$)$ d$.$ Assume that Lucky Bank is required to hold a $10\%$ deposits as reserves, and there is a $$3000$ increase in demand deposits. i$.$ Calculate the money multiplier? $(4$ marks$)$ ii$.$ How much additional new demand deposits could the $$3,000$ deposit support? $(5$ marks$)$