The following is the balance sheet for Raymond Bank, one of many commercial banks in a country. The figure presents a two column table. The heading for the first column is Assets, and the heading for the second column is Liabilities and Equity. There are five lines of data in the assets column, which, starting from the top, read as follows: Reserves, 5,000 dollars; Business loans, 10,000 dollars; Student loans, 8,000 dollars; Government securities, 2,000 dollars; and Total assets, 25,000 dollars. There are three lines of data in the liabilities and equity column, which, starting from the top, read as follows: Demand deposits, 20,000 dollars, directly to the right of reserves in the first column; Equity (net worth) 5,000 dollars, directly to the right of Government securities in the first column; and Total liabilities and equity, 25,000 dollars, directly to the right of Total assets in the first column. Assume a 10 percent reserve requirement. Calculate Raymond Bank’s required reserves. Calculate the maximum amount of additional loans that Raymond Bank can make without selling its holdings of government securities. Assuming that Raymond Bank and other banks now lend out all excess reserves, calculate the maximum possible change in the following. Demand deposits throughout the banking system Total reserves throughout the banking system Suppose that the country’s central bank purchases $1,000 of Raymond Bank’s holdings of government securities as part of its open-market operations. Do Raymond Bank’s required reserves initially increase, decrease, or remain the same as a result of the central bank’s purchase? Explain.