Suppose a lottery winner deposits $$4$ million in cash into her transactions account at the Bank of America $($BofA$).$ Assume a reserve requirement of $20$ percent and no excess reserves in the banking system prior to this deposit.

Instructions: Round your responses to two decimal places.

a$.$ Use the following T$-$account to show how her deposit initially affects the balance sheet at BofA.

Step $1-$ Bank of America

b$.$ Has the money supply been changed by her deposit?

$($Click to select$)vv$

c$.$ Use the following T$-$account to show the changes at BofA after the bank fully uses its new lending capacity.

Step $2-$ Bank of America

Assets $($in millions$)$

Liabilities $($in millions$)$

Reserves

Deposits