Bank Three currently has $650 million in transactlon deposits on Its balance sheet. The Federal Reserve has currently set the reserve requirement at 8 percent of transactlon deposits. a. If the Federal Reserve decreases the reserve requirement to 4 percent, show the balance sheet of Bank Three and the Federal Reserve System Just before and after the full effect of the reserve requlrement change. Assume Bank Three withdraws all excess reserves and glves out loans and that borrowers eventually return all of these funds to Bank Three In the form of transaction deposits. b. Redo part (a) using a 10 percent reserve requirement.