Problem 4-6 (LG 4-3) MHM Bank currently has $350 million in transaction deposits on its balance sheet. The current reserve requirement is 8 percent, but the Federal Reserve is increasing this requirement to 10 percent. a. Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts all excess reserves to loans, but borrowers return only 70 percent of these funds to MHM Bank as transaction deposits. b. Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts 80 percent of its excess reserves to loans and borrowers return 85 percent of these funds to MHM Bank as transaction deposits. Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts 80 percent of its excess reserves to loans and borrowers return 85 percent of these funds to MHM 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 Securities 28 million 28 million Assets Liabilities Loans $ 322 350 million Reserve deposits at Fed 28 Panel B: Balance Sheet after All Changes Assets Liabilities Securities 32.200 million Assets Liabilities Loans $ 322.000 million Reserve deposits at Fed Reserve accounts Transaction deposits $ 32.200 million $289.800 million 32.200 million MHM Bank million million Federal Reserve Bank Reserve accounts Transaction deposits MHM Bank S