National Bank currently has $1,400 million in transaction deposits on its balance sheet. The current reserve requirement is 8 percent, but the Federal Reserve is decreasing this requirement to 6 percent.

a. Show the balance sheet of the Federal Reserve and National Bank if National Bank converts all excess reserves to loans, but borrowers return only 50 percent of these funds to National 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)) Panel A: Initial balance sheets Federal Reserve Bank Assets Click to sel million (Click to sel million National Bank Assets million (Click to sel Click to sel Click to sel million million Panel B: Balance sheet after all changes Federal Reserve Bank Assets Liabilities Click to sel million (Click to sel million National Bank Assets Liabilities (Click to select) million (Click to sel million Click to sel million b. Show the balance sheet of the Federal Reserve and National Bank if National Bank converts 90 percent of its excess reserves to loans and borrowers return 70 percent of these funds to National 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)) Panel A: Initial balance sheets Federal Reserve Bank Assets Liabilities Click to sel million (Click to sel million National Bank Assets Liabilities (Click to select) million (Click to sel million Click to sel million Panel B: Balance sheet after all changes Federal Reserve Bank Assets Liabilities Click to sel million (Click to sel National Bank Assets Liabilities (Click to select) million (Click to sel Click to sel million