1) Suppose that the total liabilities of a depository are checkable deposits equal to $2billion. It has $1.65 billion in loans and securities, and the required reserve ratio is 15percent.Does this institution hold any excess reserves?If so, how much? (3 points)2) The Federal Reserve purchases $1 million in US Treasury bonds from a bond dealerand the dealer’s bank credits the dealer’s account. The required reserve ratio is 15percent. The bank immediately lends its excess reserves. How much will the bank be ableto lend its customers after the Fed’s purchase, ceteris paribus? If banks are fully loanedup the introduction of the new $1 million will change the money supply by how much?(2 points).3) Suppose that each 0.1 percentage point decrease in the equilibrium interest rateinduces a $10 billion in real planned investment spending by businesses. In additional theinvestment spending multiplier is equal to 5. The money multiplier is equal to 4.Furthermore, every $20 billion increase in the money supply brings a 0.1 percentagepoint reduction in the equilibrium interest rate. Use this information to answer thefollowing questions, ceteris paribus.a) How much must real planned investment spending increase if the FederalReserve desires to bring about a $100 billion increase in equilibrium real GDP? (4 points)b) How much must the money supply change for the Fed to induce the change inreal planned investment calculated in part a? (3 points)c) What dollar amount of open market operations must the Fed undertake to bringabout the money supply change calculated in part b? (3 points)4) Consider the following data. Calculate M1 and M2.Demand deposits $625Saving deposits $400US Government securities (Bonds) $1200Small denomination time deposits $950Money market deposit accounts $850Money market mutual funds $400Large denomination time deposits $1900Travelers checks $025Currency $600