MHM Bank currently has $$850$ 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 $60$ 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 $70$ percent of its excess reserves to loans

and borrowers return $85$ 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 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$.,32\mathrm{.}161))$