What happens to reserves at the First National Bank if one person withdraws $1,200 of cash and another person deposits $600 of cash? Use a T-account to explain your answer.

The T-account for First National Bank is:

Assets	Liabilities
Reserves [ Select ] ["-$600", "$0", "$600", "$1,200", "-$1,200"]	Checkable deposits [ Select ] ["-$1,200", "-$6,00", "$0", "$600", "$1,00"]