3. Bank 321 has the following information:
Reserves	25	Transaction Accounts		200
Securities	75	Capital		100
Loans	200
Total Assests	300	Total Liabilities and Capital		300

The reserve requirement is 5% on the first $200 million and 10% in excess of 200 million. The bank has loans of $200 million which is equivalent to the excess reserves. (Ch. 16)

a. How much is the excess reserves? (10 points)

b. If the bank sells securities of $10 million and loans this out, prepare an updated balance sheet. (20 points)