National Bank currently has $1,650 million in transaction deposits on its balance sheet. The current reserve requirement is 12 percent, but th Reserve is decreasing this requirement to 10 percent. Answer the following questions: (Note: National Bank converts 70 percent of its excess reserves to loans and borrowers return 55 percent of these funds to National Bank as transaction deposits) a. What is the total change in bank deposits? $ million b. Show the balance sheets of the Federal Reserve and National Bank: Panel A: Initial Balance Sheets Federal Reserve Bank Assets Liabilities Securities 5198 million Reserve accounts $198 million National Bank Assets Liabilities Loans $1,452 million Transaction deposits $1,650 million Reserve deposits at Fed $198 million Panel B: Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities $ million Reserve accounts $ $ million $1,452 Loans million $1,650 Transaction deposits million Reserve deposits at Fed $198 million Panel B. Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities $ million Reserve accounts $ million National Bank Assets Liabilities . Loans million $ Transaction deposits million Reserve deposits at Fed million