14. Which of the following statement is TRUE about the balanced sheet of Kramerica Bank? a) Kramerica bank's leverage ratio is 1.2 b) The leverage ratio states that of the $20 of assets, $19 are financed with the owner's equity. c) Suppose that the stock market declines sharply, which reduces the value of the bank's financial securities by 10%. Then the bank would be insolvent. d) Suppose that the reserve requirement is 10% and a financial crisis causes the bank to be insolvent. The reason that the credit crunch incurred is Kramerica Bank did not reach the reserve requirement