Problem 4.4 (LG 4-3) BSW Bank currently has $100 million in transaction deposits on its balance sheet The Federal Reserve has currently set the reserve requirement at 8 percent of transaction deposits 3. If the Federal Reserve decreases the reserve requirement to 4 percent, show the balance sheet of BSW and the Federal Reserve System just before and after the full effect of the reserve requirement change. Assume Bsw withdraws all excess reserves and gives outloans and that borrowers eventually return all of these funds to BSW in the form of transaction deposits b. Redo part (a) using a 10 percent reserve requirement 57 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Redo part(s) using a 10 percent reserve requirement. (Do not round intermediate calculations. Enter your answers in millions rounded to the nearest dollar amount.) Panel A Initial Balance Sheets Federal Reserve Bank Assets Liabilities Securities 10 million Reserve accounts 10 million BSW Bank Assets Liabilities 100 S Transaction deposits milion Reserve deposits at Fed Loans 10 million 90 milion Panel Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities 10 milion 10 million Reserve accounts BSW Bank Assets Liabilities ls Transaction deposits 200 million Reserve deposits at Fed Loans 00 10 min 190 million