Bank x currently has 500 million in transaction deposits, Finance Basics

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Bank x currently has 500 million in transaction deposits

Question: Bank X currently has $ 500 million in transaction deposits on its balance sheet. The Federal Reserve has set the reserve requirement at 10% of transaction deposits. If the reserve requirement is decreased to 8%, show the balance sheet of Bank X and the Federal Reserve after the full effect of the reserve requirement change.

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Finance Basics: Bank x currently has 500 million in transaction deposits

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