In the following bank balance sheet, amounts are in millions of dollars. The required reserve ratio is $4\%$ on the first $$30$ million of checkable deposits and $10\%$ on any checkable deposits over $$30$ million.

a$.$ Calculate the bank's excess reserves.

Excess reserves are $$16\mathrm{.}5$ million. $($Enter your response rounded to one decimal place.$)$

b$.$ Suppose that the bank sells $$5$ million in securities to get new cash. Show the bank's balance sheet after this transaction. $($Enter your responses rounded to one decimal place.$)$

What are the bank's new excess reserves?

Excess reserves are $$21\mathrm{.}5$ million. $($Enter your response rounded to one decimal place.$)$

c$.$ Suppose that the bank loans all its excess reserves in part $($b$)$ to a local business. Show the bank's balance sheet after the loan has been made but before the business has spent the proceeds of the

loan. $($Enter your responses rounded to one decimal place.$)$