Money, Banking, and the Federal Reserve System - End of Chapter Problems 5. Tracy Williams deposits $500 that was in her sock drawer into a checking account at the local bank. a. How does the deposit initially change the T-account of the local bank? Use the accompanying chart to illustrate the changes. Assets Liabilities Reserves -$500 Checkable deposits - $500 Reserves +$500 Checkable deposits +$500 Answer Bank