Check my work 4 25 point MHM Bank currently has $250 milion in transaction deposits on its balance sheet. The current reserve requirement is 10 percent, but the Federal Reserve is increasing this requirement to 12 percent a. Show the balance sheet of the Federal Reserve and MHM Bank MHM Bank converts all excess reserves to loans, but borrowers return only BO percent of these funds to MHM Bank as transaction deposits b. Show the balance sheet of the Federal Reserve and MHM Bank MHM Bank converts 85 percent of its excess reserves to loans and borrowers return 90 percent of these funds to MHM Bank as transaction deposits BOOK Complete this question by entering your answers in the tabs below. Required Required Show the balance sheet of the Federal Reserve and MHM Bank i HM Bank converts all excets reserves to loans, but borrowers return only 80 percent of these funds to MHM Bank as transaction deposits. (Enter your answers in milions. Do not round intermediate calculations, Round your "Panel " answers to 3 decimal places (692.161) Panel A: Inti Balance Shoots Federal Reserve Bank Assets Liabilities Securities 5 25 million Reservescount $ 25 min MHM Bank Assets Liabilities $ Transaction deposit $ 250 milion Loans Reserve deposits at Fed 225 million 25 milion Required A Required B Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts all excess reserves to loans, but borrowers return only 80 percent of these funds to MHM Bank as transaction deposits. (Enter your answers in millions. Do not round Intermediate calculations. Round your "Panel B' answers to 3 decimal places. (e.g. 32.161)) Panel A: Initial Balance Sheets Federal Reserve Bank Assets Securities Llabilities $ 25 million Reserve accounts $ 25 million MHM Bank Assets Liabilities Loans Reserve deposits at Fed $ 225 million 25 million Transaction deposits $ 250 milion Panel B: Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities million Reserve accounts milion MHM Bank Assets Liabilities Loans Reserve deposits at Fed Transaction deposits million million million Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts 85 percent of its excess reserves to loans and borrowers return 90 percent of these funds to MHM Bank as transaction deposits. (Enter your answers in millions. Do not round Intermediate calculations. Round your "Panel B" answers to 3 decimal places. (e.9., 32.161)) Panel A: Initial Balance Sheets Federal Reserve Bank Assets Liabilities Securities million Reserve accounts million MHM Bank Assets Liabilities Transaction deposits million Loans Reserve deposits at Fed million million Panel B: Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities million Reserve accounts million MHM Bank Assets Liabilities Transaction deposits million Loans Reserve deposits at Fed million million
