Marly Bank currently has $$650$ million in transaction

deposits on its balance sheet. The current reserve require$-$

ment is $10$ percent, but the Federal Reserve is decreasing

this requirement to $9$ percent. $($LG $4-3)$

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.