Problems Ch3 The Fed Seved Help Save & Exit Submit Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. 2 Required A Required B 10 points If the Federal Reserve decreases the reserve requirement to 6 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 out loans and that borrowers eventually return all of these funds to BSW in the form of transaction deposits. (Do not round intermediate calculations. Enter your answers in millions rounded to the nearest dollar amount.) Panel A: Initial Balance Sheets Securities Loans Federal Reserve Bank Assets Liabilities $ 12 x million Reserve accounts 12 x million BSW Bank Assets Liabilities $ 138 million 12 million Transaction deposits S 150 million Reserve deposits at Fed Panel B: Balance Sheet after All Changes Securities Loans Reserve deposits at Fed Federal Reserve Bank Assets Liabilities $ 12 million Reserve accounts S 12 million BSW Bank Assets Liabilities $ 188 million 12 x million Transaction deposits S 200 million < Required A Required B > Show less Return to question