MHM Bank currently has $$500$ million in transaction deposits on its balance sheet. The current reserve requirement is $8$ pb$.$ Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts $85$ percent of its excess reserves to loans and borrowers return $90$ percent of these funds to MHM Bank as transaction deposits.MHM Bank currently has $$500$ 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 $85$ percent of Its excess reserves to loans

and borrowers return $90$ percent of these funds to MHM Bank as transaction deposits.

Answer is not complete.

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

Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts $85$ 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$.,32\mathrm{.}161))$