If the Fed lends five banks an additional total of $100 million but depositors withdraw $50 million and hold it as currency, what happens to reserves and the monetary base? Use T-accounts to explain your answer.

Assets Reserves + $50 million Five Banks Liabilities Discount loans + $100 million Federal Reserve System Assets Liabilities Discount loans Reserves + $100 million + $100 million Currency + $50 million Deposits - $50 million