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I already did the first A I just need help with B. National Bank currently has $2,100 million in transaction deposits on its balance sheet.

I already did the first A I just need help with B.

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National Bank currently has $2,100 million in transaction deposits on its balance sheet. The current reserve requirement is 8 percent, but the Federal Reserve is decreasing this requirement to 6 percent a. Show the balance sheet of the Federal Reserve and National Bank if National Bank converts all excess reserves to loans, but borrowers return only 50 percent of these funds to National Bank as transaction deposits b. Show the balance sheet of the Federal Reserve and National Bank if National Bank converts 90 percent of its excess reserves to loans and borrowers return 70O percent of these funds to National Bank as transaction deposits. Complete this question by entering your answers in the tabs below Required A Required B Show the balance sheet of the Federal Reserve and National Bank if National Bank converts 90 percent of its excess reserves to loans and borrowers return 70 percent of these funds to National 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 Liabilities ecurities 168 million eserve accounts 168 million National Bank Assets Liabilities oans 1.932 million ransaction deposits 2,100 million eserve deposits at Fed 168 million Panel B: Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities million million National Bank Assets Liabilities million million million

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