Suppose that Karen deposits $600 into her checking account at the bank. The reserve requirement for Karen's bank is 8%. Assume the bank does not want to hold any excess reserves of new deposits. a. Use this information to complete the balance sheet below to show how the bank's assets and liabilities change when Karen deposits the $600. Instructions: Enter your answers as a whole number. A Simple Bank Balance Sheet Liabilities Change in Deposits: $ Assets Change in Reserves: $ Change in Loans: $ b. Why are deposits considered liabilities for a bank?

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