5. If the Fed lends ve banks a. total of 100 million but depositors withdraw 50 million and hold it as currency, what happens to reserves and the monetary base? Use Taccounts to explain your answer. (10 points) 6. If the Fed buys 1 million of bonds from the First National Bank, but an additional 8% of any deposit is held as excess reserves. a. What is the total increase in checkable deposits? (5 points) b. Describe the two rst steps of the deposit creation process within the banking system. (10 points)