Bank of Bross
Assets Liabillities
Reserves $3,000 Deposit $50,000
Leans 47,000
Assume the Fed's reserve requirement is 5 percent but the Bank of Bross has been holding excess reserves. Above is the bank's current balance sheet. The Bank of Bross decides to stop holding excess reserves so they can instead maximize their number of loans. After they make this change, how much does the money supply eventually increase? (Hints: Assume that people hold only deposits and no currency, assume all other banks hold no excess reserves) a. $10,833.33 b. $13,000.00 c. $8,333.33 d. $510,000,00