Marly Bank currently has $$650$ million in transaction deposits on its balance

sheet. The current reserve requirement is $10$ percent, but the Federal Reserve

is decreasing this requirement to $9$ percent.

a$.$ Show the balance sheet of the Federal Reserve and Marly Bank if Marly Bank

converts all excess reserves to loans, but borrowers return only $60$ percent of

these funds to National Bank as transaction deposits.

b$.$ Show the balance sheet of the Federal Reserve and Marly Bank if Marly Bank

converts $90$ percent of its excess reserves to loans and borrowers return $75$

percent of these funds to Marly Bank as transaction deposits.