3. Draw a simple T-account for First National Bank which has $5,000 of deposits, a required

reserve ratio of 10 percent, and excess reserves of $300. Make sure you balance sheet balances

To draw a T-account for First National Bank, we need to understand the components involved: deposits, required reserves, and excess reserves.

First, let's define the terms:
- Deposits: These represent the total amount of money that customers have deposited in the bank. In this case, the deposits are $5,000.
- Required Reserve Ratio: This is the percentage of deposits that banks are required to hold as reserves. In this case, the required reserve ratio is 10 percent.
- Excess Reserves: These are the funds held by a bank over and above its required reserves. It represents the amount of money the bank can lend or invest. In this case, the excess reserves are $300.

Now, let's draw the T-account:

First National Bank
Assets | Liabilities
----------------------------------------------
Reserves | Deposits

Since we need to balance the balance sheet, we will show the reserves as the sum of required reserves and excess reserves.

First National Bank
Assets | Liabilities
----------------------------------------------
Reserves | Deposits
$300 | $5,000

In this case, the $300 represents the excess reserves, while the remaining amount of deposits ($4,700) represents the required reserves.

Remember, the balance sheet must always balance, which means that the total assets should equal the total liabilities. In this case, the total assets ($300) equals the total liabilities ($5,000), thus balancing the balance sheet for First National Bank.