The bank you own has the following balance sheet: Assets Liabilities Reserves $ 75 million...
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Accounting
The bank you own has the following balance sheet:
Assets Liabilities
Reserves $ 75 million Deposits $ 500 million
Loans $ 525 million Bank capital $100 million
a. If the bank suffers a deposit outflow of $50 million with a required reserve ratio on deposits of 10 percent, what risk is your bank facing and why?
b.With a deposits outflow of $50 million, will the bank meet the reserve requirement? Show your work
c.what action must you take to keep your bank from failing
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