2. Refer to the simplified balance sheet for a bank and answer the following questions. Assets Liabilities Reserves $10,000 Deposits $70,000 Loans $66,000 $6,000 Stockholder’s equity a. If the required reserve ratio is 5%, how much in excess reserves does this bank hold? Show your work. b. What is the maximum amount this bank can expand on its loans? Show your work. 1 of 3 Unit 9 [MT445] c. What will happen to the M1 money supply if it makes the loans under (b) above and those funds are deposited into another bank by the borrowers?