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National Bank currently has $700 million in transaction deposits on its balance sheet. The current reserve requirement is 8 percent, sut the Federal Reserve is
National Bank currently has $700 million in transaction deposits on its balance sheet. The current reserve requirement is 8 percent, sut the Federal Reserve is decreasing this requirement to 6 percent. .Show the balance sheet of the Federal Reserve and National Bank if National Bank converts all excess reserves to loans, but orrowers return only 50 percent of these funds to National Bank as transaction deposits Show the balance sheet of the Federal Reserve and National Bank if National Bank converts 90 percent of its excess reserves to ians and borrowers return 70 percent of these funds to National Bank as transaction deposits. Complete this question by entering your answers in the tabs below. Show the balance sheet of the Federal Reserve and National Bank if National Bank converts all excess reserves to loans, but borrowers nly 50 percent of these funds to National Bank as transaction deposits. (Enter your answers in millions. Do not round intermediate ca) ound your "Panel B" answers to 3 decimal places. (e.9. 32.161))
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