1. Write out the T-accounts for the following transactions. (Ch. 9)

A. Larry closes his $75,500.88 account with JPMC Bank, spends $800.88 of that money on consumption goods, then places the rest in W Bank.

B. Suppose regulators tell W Bank that it needs to hold only 7 percent of those transaction deposits in reserve.

C. W Bank decides that it needs to hold no excess reserves but needs to bolster its secondary reserves.

D. A depositor in W bank decides to move $5,000 from her checking account to a CD in W Bank.

E. W Bank sells $500,000 of Treasuries and uses the proceeds to fund two $200,000 mortgages and the purchase of $100,000 of municipal bonds. (Note: This is net. The bank merely moved $100,000 from one type of security to another.)