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MHM Bank currently has $300 million in requirement is 8 percent, but the Federal Reserve is increasing this requirement to 10 percent deposits on its
MHM Bank currently has $300 million in requirement is 8 percent, but the Federal Reserve is increasing this requirement to 10 percent deposits on its balance sheet. The 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 60 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., 32.1611) Panel A: Initial balance sheets to to to s excess reserves to loans and borrowers return 80 percent of these funds to MHM Bank as transaction deposits. (Enter your answers in millions. Do not round intermediate b. Show the balance sheet of the Federal Reserve and MHM Bank it MHM Bark converts 70 percent of its
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