2. In an earlier explore page, you worked a simple problem with a balance sheet. Here is a similar problem. Jane Doe finds that she needs more cash. She goes to her bank and withdraws $400 from her savings account and gets a loan for another $400. As a result she now has $800 more in currency, $400 less in her savings account, and owes the bank $400. Show the changes this transaction has on her bank's balance sheet:
Jane's Bank
Assets		Liabilities and Net Worth
Vault Cash $	.	Checking Accounts $
Deposits at the Fed. Res $		Savings Accounts $
Loans $		Other Liabilities $
Securities $		Net Worth $
Other $
What happened to the legal reserves in the banking system as a result of Miss Doe's withdrawal of cash? ?? They Increase They Decrease They Stay the Same
Remember that balance sheets must balance. Also remember that we are looking not at Jane's balance sheet, but the balance sheet of her bank.