Question: Consider the balance sheet for the Wahoo Bank as presented below.
Using a required reserve ratio of 10% and assuming that the bank keeps no excess reserves, write the changes to the balance sheet for each of the following scenarios:
a. Bennett withdraws $200 from his checking account.
b. Roland deposits $500 into his checking account.
c. The Fed buys $1,000 in government securities from the bank.
d. The Fed sells $1,500 in government securities to the bank.