Joe has never trusted banks and always kept his money in cash.Joe pulls out his money jar discovers that it has $20000 in itand decides it is unsafe to keep that much cash. Joe stops at theLocal National Bank the following day opens a checking accountand deposits the $20000.Assume that all banks in the banking system have a 10% reserverequirement. Further assume that all banks in the banking systemare fully loaned up both before and after Joe makes his deposit.Based on the Multiple Expansion of Bank Deposits concept answerthe following:1. By what amount will total lendable deposits in the bankingsystem increase after the initial deposit?2. By what amount will new loans in the banking system increasegiven a monetary multiplier of 10 ( 1/.1)?3. By what amount will reserves in the banking system increaseafter the initial deposit?In addition consider any factors that are not included in yourcalculations and might affect the amount of expansion if they wereconsidered.