1. Consider the balance sheets of Bank A and Bank B. If reserve requirements were 10 percent 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. (LO3) Bank A Bank B (in millions) (in million) Assets Liabilities Assets Liabilities Reserves $50 Transactions Deposits $200 Reserves $30 Transactions Deposits $200 Loans 5920 Nontransactions Deposits $600 Loans 5920 Nontransactions Deposits $600 Securities $250 Borrowings $100 Securities $50 Borrowings $100