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8. Consider a bank with the following balance sheet: Assets Liabilities Chequable Deposits $100 million...

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8. Consider a bank with the following balance sheet: Assets Liabilities Chequable Deposits $100 million Bank Capital Desired Reserves 8 million 3 million $45 million $6 million Excess Reserves T-bills Mortgage Loans Commercial Loans$30 million $ 20 million a) Calculate the leverage ratio. b) Is the bank well capitalized? Explain. c) Calculate the bank's risk-weighted assets. d) Does the bank meet the Basel Accord's Capital Requirement? Explain. 9. If a bank has $100,000 of demand deposits, a desired reserve ratio of 20 percent, and it holds $40000 in reserves. How much is the maximum deposit outflow it can sustain without altering its balance sheet? (Please show your working process!)

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