1. A small state bank currently has reserves equal to $750,000. If the state reserve requirement is 20%, but the bank feels more comfortable with maintaining a 30% reserve, what amount of deposits does the bank currently have?
2. Suppose the Federal Reserve increases deposits at financial institutions by $59 billion through its open market operations. If the reserve requirement for all deposits is 8%, what is the maximum impact the Fed's actions can have on total deposits?
$____________ billion increase.