1. Consider a 00mmercial bank that holds $10, 000 in deposits and has made loans for $5,000 at a rate of 6% which is paid annualy. The bank holds no other assets and has equity equal to $5, 000. The reserve requirement in the economy is 7% and the interest rate is 5%. i) How much does the bank hold in reserves? How much of these are excess reserves. ii) Compute the bank's leverage ratio and the return on assets at the end of period (after the annual loan payments have been made). iii) Assume the bank pays out the return over equity as a dividend. How is this transaction reected on the balance sheet