Assume that Mrs. Smith withdraws 30% of all FCB’s checkable deposits. Use T-account to show changes in FCB’s balance sheet and show the resulting balance sheet (after withdrawal).

b. After Mrs. Smith’s withdrawal, does FCB have the minimum required reserves according to the reserve requirement ratio? Calculate current reserves and the minimum required reserves to justify your answer. (Show your computational work)

In sentences, briefly explain three actions the FCB can engage to increase its reserves (three actions to obtain additional reserves to meet the requirement). Show each of the three actions in a separate T-account. You should explain each possible action and report the 3 T-accounts showing how each of these actions would impact the FCB's balance sheet. You may need to add a liability component to the bank's T-account and balance sheet for one of the possible actions the FCB can engage in.

First Carolina Bank (FCB) has the following balance sheet with [F] required reserve ratio. Original Balance Sheet used for Questions 1 through 4: Assets Reserves Securities Loans Balance Sheet In thousands of Liabilities US dollars In thousands of US dollars [A] Checkable Deposits [D] HT [B] Capital [E] [C]