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MHM Bank currently has $250 million in transaction deposits on its balance sheet. The current reserve requirement is 10 percent, but the Federal Reserve is increasing this requirement to 12 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 80 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 85 percent of its excess reserves to loans and borrowers return 90 percent of these funds to MHM Bank as transaction deposits. Complete this question by entering your answers in the tabs below. Required A Required B Show the balance sheet of the Federal Reserve and MHM Bank if MHM Bank converts all excess reserves to loans, but borrowers return only 80 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.9.. 32.161)) Panel A Initial Balance Sheets Federal Reserve Bank Assets Liabilities Securities 25 million Reserve accounts 25 milion MHM Bank Assets Liabilities Loans Reserve deposits at Fed 5 225 million 25 milion Transaction deposits $ 250 million MHM Bank Assets Liabilities $ Loans Reserve deposits at Fed Transaction deposits 225 million 25 million $ 250 million Panel B: Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities milion Reserve accounts million MHM Bank Assets Liabilities Loans Reserve deposits at Fed Transaction deposits milion million million Requino Required) Check my work MHM Bank currently has $250 million in transaction deposits on its balance sheet. The current reserve requirement is 10 percent, but the Federal Reserve is increasing this requirement to 12 percent a. Show the balance sheet of the Federal Reserve and MHM Bank If MHM Bank converts al excess reserves to loons, but borrowers return only 80 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 85 percent of its excess reserves to loans and borrowers return 90 percent of these funds to MHM Bank as transaction deposits. Complete this question by entering your answers in the tabs below. Required A Required B Show the balance sheet of the Federal Reserve and MHM Bank MHM Bank converts 85 percent of its excess reserves to loans and borrowers return 90 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. (0.9., 32 161) Panel Intl Balance Sheets Federal Reserve Bank Assets Liabilities Securities $ 25 million Reserve accounts 5 25 milion MHM Bank Assets Liabilities 5 Transaction deposit 5 Loans Reserve deposits of Fod 225 milion 25 million 250 milion MHM Bank Assets Liabilities Loans Reserve deposits at Fed Transaction deposits 225 million 25 million $ 250 million Panel B: Balance Sheet after All Changes Federal Reserve Bank Assets Liabilities Securities es million Reserve accounts million MHM Bank Assets Liabilities Transaction deposits Loans Reserve deposits at Fed million million million

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