Suppose that the T-account for The Open Campus National Bank (OCNB) is as follows: Assets Liabilities Reserves      $2,000 Loans           7,000 Deposits    $9,000 If the central bank requires banks to hold 5% of deposits as reserves, how much in excess reserves does OCNB now hold? If OCNB decides to reduce its reserves to only the required amount, by how much would the economy’s money supply increase?

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