Money, Banking, and the Federal Reserve System - End of Chapter Problem Ryan Cozzens withdraws $400...

Transcribed Image Text:

Money, Banking, and the Federal Reserve System - End of Chapter Problem Ryan Cozzens withdraws $400 from his checking account at the local bank and keeps it in his wallet. a. How will the withdrawal initially change the T-account of the local bank? Use the accompanying chart to illustrate the changes. Assets Reserves-$400 Liabilities Checkable deposits-$400 Checkable deposits +$400 Reserves +$400 Money, Banking, and the Federal Reserve System - End of Chapter Problem Ryan Cozzens withdraws $400 from his checking account at the local bank and keeps it in his wallet. a. How will the withdrawal initially change the T-account of the local bank? Use the accompanying chart to illustrate the changes. Assets Reserves-$400 Liabilities Checkable deposits-$400 Checkable deposits +$400 Reserves +$400