1. Consider the balance sheets of Bank A and Bank B. If reserve requirements were 10% of transaction deposits and both banks had equal access to the interbank market and funds from the Federal Reserve, which bank do you think faces the greatest liquidity risk? Explain your answer. 2. Looking again at Bank A and Bank B, based on the information available, which bank do you think is at the greatest risk of insolvency? What other information might you use to assess the risk of insolvency of these banks? 3. Discuss "government safety net