A new bank has vault cash of $1 million and $5 million in depositsheld at its Fe

A new bank has vault cash of $1 million and $5 million in depositsheld at its Federal Reserve District Bank.a. If the required reserves ratio is 8 percent what dollar amountof deposits can the bank have?b. If the bank holds $65 million in deposits and currently holdsbank reserves such that excess reserves are zero whatrequired reserves ratio is implied?2. Assume a bank has $5 million in deposits and $1 million in vaultcash. If the bank holds $1 million in excess reserves and the requiredreserves ratio is 8 percent what level of deposits are being held?3. A bank has $110 million in deposits and holds $10 million in vaultcash.a. If the required reserves ratio is 10 percent what dollaramount of reserves must be held at the Federal Reserve Bank?b. How would your answer in Part (a) change if the requiredreserves ratio was increased to 12 percent?