Set up the following balance sheets:

a. New Bank starts its first day of operations with $6 million in capital. It receives $100 million in checkable deposits. The bank makes a $25 million commercial loan and another $25 million in mortgage loans. If required reserves are 8%, what does the banks balance sheet look like? (Make sure the balance sheet balances!).

b. Now New Bank (from part (a)) decides to invest $45 million in 30-day T-Bills. What does the balance sheet look like after this transaction?