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MHM Bank currently has $ 8 0 0 million in transaction deposits on its balance sheet. The current reserve requirement is 1 2 percent, but

MHM Bank currently has $800 million in transaction deposits on its balance sheet. The current reserve requirement is 12 percent, but
the Federal Reserve is increasing this requirement to 14 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 50 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 60 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.
Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts 60 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.,32.161))Please show work in excel MHM Bank currently has $800 million in transaction deposits on its balance sheet. The current reserve requirement is 12 percent, but
the Federal Reserve is increasing this requirement to 14 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 50 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 60 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.
Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts all excess reserves to loans, but borrowers return only 50
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.,32.161))
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