August is considered as the back-to-school month when parents of school going children spend a lot of money on books and other necessities for their children. Suppose a family withdraws $100,000 from Scotia Bank and spends on their children's necessities. (The present required reserve ratio is 13.64%)

a. Using the bank's balance sheet, show the impact on this bank's assets and liabilities.

b. What is the impact on the bank's loans?