BSW Bank currently has $900 million in transaction deposits on its balance sheet. The Federal Reserve has currently set the reserve requirement at 8 percent of transaction deposits. a. If the Federal Reserve decreases the reserve requirement to 5 percent, show the balance sheet of BSW and the Federal Reserve System just before and after the full effect of the reserve requirement change. Assume BSW withdraws all excess reserves and gives outloans and that borrowers eventually return all of these funds to BSW in the form of transaction deposits. b. Redo port(a) using a 10 percent reserve requirement. Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required If the Federal Reserve decreases the reserve requirement to 5 percent, show the balance sheet of BSW and the Federal Reserve System just before and after the full effect of the reserve requirement change. Assume BSW withdraws all excess reserves and gives out loans and that borrowers eventually return all of these funds to BSW in the form of transaction deposits. (Do not round intermediate calculations. Enter your answers in millions rounded to the nearest dollar amount.) Show less Panel A: Initial Balance Sheets Federal Reserve Bank Assets Llabilities Securities 72 million Reserve accounts 72 million Assets Liabilities Securities $ 72 million Reserve accounts 72 million BSW Bank Assets Liabilities Transaction deposits $ 900 million Loans Reserve deposits at Fed million million Panel B: Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities 72 million Reserve accounts million BSW Bank Assets Liabilities $ Transaction deposits Reserve deposits at Fed Loans million 72 million million Required A Required B > BSW Bank currently has $900 million in transaction deposits on its balance sheet. The Federal Reserve has currently set the reserve requirement at 8 percent of transaction deposits. a. If the Federal Reserve decreases the reserve requirement to 5 percent, show the balance sheet of BSW and the Federal Reserve System just before and after the full effect of the reserve requirement change. Assume BSW withdraws all excess reserves and gives outloans and that borrowers eventually return all of these funds to BSW in the form of transaction deposits. b. Redo part (a) using a 10 percent reserve requirement Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B Redo part (a) using a 10 percent reserve requirement. (Do not round Intermediate calculations. Enter your answers in millions rounded to the nearest dollar amount.) Panol A Initial Balance Sheets Federal Reserve Bank Assets Liabilities Securities 72 million Reserve accounts 72 million BSW Bank Assets Liabilities Securities 72 million Reserve accounts 72 million BSW Bank Assets Liabilities Transaction deposits 900 milion Loans Reserve deposits at Fed million million Panel B: Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities $ 72 million Reserve accounts $ 72 million BSW Bank Assets Liabilities $ Transaction deposits million Reserve deposits at Fed Loans 72 million million