MHM Bank currently has $$200$ million in transaction deposits on its balance sheet. The current reserve requirement is $8$ percent, but the Federal Reserve is increasing this requirement to $10$ percent.

a$.$ Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts all excess reserves to loans, but borrowers return only $70$ percent of these funds to MHM Bank as transaction deposits.

b$.$ Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts $80$ percent of its excess reserves to loans and borrowers return $90$ percent of these funds to MHM Bank as transaction deposits.

Complete this question by entering your answers in the tabs below.

Required B

Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts $80$ percent of its excess reserves to loans and borrowers return $90$ percent of these funds to MHM 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$.,32\mathrm{.}161))$

$\backslash$table$[[$Panel A: Initial Balance Sheets$],[$Federal Reserve Bank$],[$Assets$,$Liabilities$],[$Securities$,$$$,16,$million,Reserve accounts,$$,16,$million$],[$MHM Bank$],[$Assets$,$Liabilities$],[$Reserve deposits at Fed,$$,16,$million,Transaction deposits,,,million$],[$Loans$,,,$million,,,,$],[$Panel B: Balance Sheet after All Changes$],[$Federal Reserve Bank$],[$Assets$,$Liabilities$]]$